Question
The following selected transactions relate to Falcetto Company: 01-Mar Sold $20000 of merchandise to Potter company, terms 2/10, n/30 11-Mar Received payment in full from
The following selected transactions relate to Falcetto Company: 01-Mar Sold $20000 of merchandise to Potter company, terms 2/10, n/30 11-Mar Received payment in full from Potter Company for balance due. 12-Mar Accepted Juno Company's $20,000, 6-month, 12% note for balance due 13-Mar Made Falcetto Company credit card sales for $13,200. 15-Mar Made American Express credit sales totaling $6,700. A 5% service fee is charged by American Express. 30-Mar Received payment full from American Express Company. 11-Apr Sold accounts receivable of $8,000 to Harcot Factor. Harcot Facto assesses a service charge of 2% 13-Apr Received collections of $8,200 on Falcetto Company credit card sales and added finance charges of 1.5% to the remaining balances. 10-May Wrote off as uncollectible $16,000 of accounts receivable. Falcetto uses the percentage of sales basis to estimate bad debts 30-Jun Credit sales for the first 6 months total $2,000,000. The bad debt percentage is 1% of credit sales. At June 30, the balance in the allowance account is $3,500 16-Jul One of the accounts receivable written off in May was from J. Simmon, who pays the amount due, $4,000, in full. Instructions: prepare the journal entries for the transaction
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