The question in the image is: P8-7B: On January 1, 2017, Valdez SA had Accounts Receivable of €91,000 and Allowance for Doubtful Accounts of €8,100. Valdez prepares financial statements annually on December 31. During the year, the following transactions occurred: • Jan. 5: Sold €8,400 of merchandise to Patrick Co., terms n/30. • Feb. 2: Accepted an €8,400, 4-month, 5% promissory note from Patrick for the balance due. • Feb. 12: Sold €13,500 of merchandise to Marguerite SA and accepted a €13,500, 2-month, 6% note for the balance due. • Feb. 26: Sold €7,000 of merchandise to Felton Co., terms n/10. • Apr. 5: Accepted a €7,000, 3-month, 8% note from Felton Co. for the balance due. • Apr. 12: Collected Marguerite’s note in full. • June 2: Collected Patrick’s note in full. • July 5: Felton Co. dishonors its note of April 5. It is expected that Felton will eventually pay the amount owed. • July 15: Sold €11,000 of merchandise to Planke Co. and accepted Planke’s €11,000, 3-month, 8% note for the amount due. • Oct. 15: Planke Co.’s note was dishonored. Planke Co. is bankrupt, and there is no hope of future settlement.