Question

The following selected transactions are from Garcia Company.

2016
Dec.		16			Accepted a $20,400, 60-day, 12% note dated this day in granting Rita Griffin a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Griffin note.

2017
Feb.		14			Received Griffin’s payment of principal and interest on the note dated December 16.
Mar.		2			Accepted a $9,000, 6%, 90-day note dated this day in granting a time extension on the past-due account receivable from Wright Co.
		17			Accepted a $7,200, 30-day, 10% note dated this day in granting Wang Lee a time extension on her past-due account receivable.
Apr.		16			Lee dishonored her note when presented for payment.
May		31			Wright Co. refused to pay the note that was due to Garcia Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Wright Co.’s accounts receivable.
July		16			Received payment from Wright Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 6%.
Aug.		7			Accepted a $22,000, 90-day, 10% note dated this day in granting a time extension on the past-due account receivable of Collins Co.
Sep.		3			Accepted a $11,400, 60-day, 10% note dated this day in granting Maria Gonzalez a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Gonzalez for the September 3 note.
Nov.		5			Received payment of principal plus interest from Collins for the August 7 note.
Dec.		1			Wrote off the Lee account against the Allowance for Doubtful Accounts.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Schedule of Receivables
• Calculation of Interest

Answer 1