Answer:
Jan. 5
Dr Account Receivable         $4,000
 Cr Sales                    $4,000
(to record sales to Rian)
Feb. 2
Dr Promissory note Receivable  $4,000
 Cr Account Receivable        $4,000
(to record acceptance of Rian company's note)
Feb. 12
Dr Promissory note Receivable   $12,000
 Cr Sales                    $12,000 Â
(to record sales to Cato company through acceptance its notes)
Feb. 26
Dr Account Receivable          $5,200
 Cr Sales                     $5,200
(to record sales to Malcolm)
Apr. 5
Dr Promissory note Receivable   $5,200
 Cr Account Receivable         $5,200
( to record acceptance of Malcolm notes)
Apr. 12 ( assume Cato's note is collected)
Dr Cash                        $12,200
Cr Promissory note Receivable    $12,000
Cr Interest Income              $200
(to record the collection of Cato's note)
June. 2 ( assume Rian's note is collected)
Dr Cash                        $4,120
Cr Promissory note Receivable    $4,000
Cr Interest Income              $120
(to record the collection of Rian's note)
Jul. 5
Dr Cash                        $5,304
Cr Promissory note Receivable    $5,200
Cr Interest Income              $104
(to record the collection of Malcolm's note)
Explanation:
The calculation of Interest income from the Notes of the three companies as followed:
Rian: 4,000 x 9% x 4/12 = $120
Cato: 12,000 x 10% x 2/12 = $200
Malcolm: 5,200 x 8% x 3/12 = $104.
Further explanation has been put as description under each journal entries listed above.
Cost of goods sold is not included for each sales entries as guided in the question.
