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the following selected transactions relate to falsetto souvenirs company mar 1 sold 691613

The following selected transactions relate to Falsetto Souvenirs Company:

Mar. 1

Sold $20,000 of merchandise to Potter Hotels, terms 2/10, n/30.


Received payment in full from Potter Hotels for balance due.


Accepted Juno Resorts $20,000, 6 month, 12% note for balance due.


Made American Express credit sales totaling $6,700. A 5% service fee is charged by American Express.


Received payment in full from American Express Company.

Apr. 11

Sold accounts receivable of $8,000 to Hartco Factor. Hartco Factor assesses a service charge of 2% of the amount of receivables sold.

May. 10

Wrote off as uncollectible $16,000 of accounts receivable. falsetto uses the percentage of sales basis to estimate bad debts.

June. 30

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.

Jul. 16

One of the accounts receivable written off in May was from J. Simon, who pays the amount due, $4,000, in full.


Prepare the journal entries for the transactions.

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