Prepare journal entries to record the following selected transactions of Calio Company.
Mar. 21 Accepted a $17,200, 180-day, 7% note dated March 21 from James Penn in granting a time extension on his past-due account receivable.
Sept. 17 Penn dishonors his note when it is presented for payment.
Dec. 31 After exhausting all legal means of collection, Calio Company writes off Penn’s account against the Allowance for Doubtful Accounts.