On January 1, 2014, Derek Company had Accounts Receivable $139,000, Notes Receivable $30,000, and Allowance for Doubtful Accounts $13,200. The note receivable is from Kaye Noonan Company. It is a 4-month, 12% note dated December 31, 2013. Derek Company prepares financial statements annually. During the year, the following selected transactions occurred.
Jan. 5: Sold $24,000 of merchandise to Zwingle Company, terms n/15.
Jan. 20: Accepted Zwingle Company's $24,000, 3-month, 9% note for balance due.
Feb. 18: Sold $8,000 of merchandise to Gerard Company and accepted Gerard's $8,000, 6-month, 8% note for the amount due.
Apr. 20: Collected Zwingle Company note in full.
Apr. 30: Received payment in full from Kaye Noonan Company on the amount due.
May 25: Accepted Isabella Inc.'s $4,000, 3-month, 7% note in settlement of a past-due balance on account.
Aug. 18: Received payment in full from Gerard Company on note due.
Aug. 25: The Isabella Inc. note was dishonored. Isabella Inc. is not bankrupt; future payment is anticipated.
Sept. 1: Sold $12,000 of merchandise to Fernando Company and accepted a $12,000, 6-month, 10% note for the amount due.
Instructions:
Journalize the transactions.