Question

2016
Dec.		16			Accepted a $13,200, 60-day, 12% note dated this day in granting Wang Lee a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Lee note.

2017
Feb.		14			Received Lee’s payment of principal and interest on the note dated December 16.
Mar.		2			Accepted a $10,000, 6%, 90-day note dated this day in granting a time extension on the past-due account receivable from Collins Co.
		17			Accepted a $10,800, 30-day, 7% note dated this day in granting Kathy Perry a time extension on her past-due account receivable.
Apr.		16			Perry dishonored her note when presented for payment.
May		31			Collins Co. refused to pay the note that was due to Hall Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Collins Co.’s accounts receivable.
July		16			Received payment from Collins Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 6%.
Aug.		7			Accepted a $20,000, 90-day, 6% note dated this day in granting a time extension on the past-due account receivable of Brown Co.
Sep.		3			Accepted a $3,000, 60-day, 10% note dated this day in granting Hao Lee a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Lee for the September 3 note.
Nov.		5			Received payment of principal plus interest from Brown for the August 7 note.
Dec.		1			Wrote off the Perry account against the Allowance for Doubtful Accounts. 2016 Dec. 16 Accepted a $13,200, 60-day, 12% note dated this day in granting Wang Lee a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Lee note. 2017 Feb. 14 Received Lee’s payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $10,000, 6%, 90-day note dated this day in granting a time extension on the past-due account receivable from Collins Co. 17 Accepted a $10,800, 30-day, 7% note dated this day in granting Kathy Perry a time extension on her past-due account receivable. Apr. 16 Perry dishonored her note when presented for payment. May 31 Collins Co. refused to pay the note that was due to Hall Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Collins Co.’s accounts receivable. July 16 Received payment from Collins Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 6%. Aug. 7 Accepted a $20,000, 90-day, 6% note dated this day in granting a time extension on the past-due account receivable of Brown Co. Sep. 3 Accepted a $3,000, 60-day, 10% note dated this day in granting Hao Lee a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Lee for the September 3 note. Nov. 5 Received payment of principal plus interest from Brown for the August 7 note. Dec. 1 Wrote off the Perry account against the Allowance for Doubtful Accounts.

Answer 1