On January 1, 2020, Cullumber Company had Accounts Receivable $134,200, Notes Receivable $39,600, and Allowance for Doubtful Accounts $28,200. The note receivable is from Willingham Company. It is a 4-month, 8% note dated December 31, 2019. Cullumber Company prepares financial statements annually at December 31. During the year, the following selected transactions occurred.
Jan. 5 Sold $35,600 of merchandise to Sheldon Company, terms n/15.
20 Accepted Sheldon Company’s $35,600, 3-month, 7% note for balance due.
Feb. 18 Sold $23,900 of merchandise to Patwary Company and accepted Patwary’s $23,900, 6-month, 8% note for the amount due.
Apr. 20 Collected Sheldon Company note in full.
30 Received payment in full from Willingham Company on the amount due.
May 25 Accepted Potter Inc.’s $19,800, 3-month, 6% note in settlement of a past-due balance on account.
Aug. 18 Received payment in full from Patwary Company on note due.
25 The Potter Inc. note was dishonored. Potter Inc. is not bankrupt; future payment is anticipated.
Sept. 1 Sold $13,000 of merchandise to Stanbrough Company and accepted a $13,000, 6-month, 9% note for the amount due.