On january 1, 2017, novak corp. had accounts receivable of $54,300 and allowance for doubtful accounts of $3,700. novak corp. prepares financial statements annually. during the year, the following selected transactions occurred:
jan. 5 sold $3,600 of merchandise to rian company, terms n/30.
feb. 2 accepted a $3,600, 4-month, 9% promissory note from rian company for
balance due.
12 sold $10,800 of merchandise to cato company and accepted
cato’s $10,800, 2-month, 10% note for the
balance due.
26 sold $12,200 of merchandise to malcolm co., terms n/10.
apr. 5 accepted a $12,200, 3-month, 9% note from malcolm co. for balance due.
12 collected cato company note in full.
june 2 collected rian company note in full.
15 sold $2,000 of merchandise to gerri inc. and accepted a $2,000,
6-month, 13% note for the amount due.