December $16$ Accepted a $$21,600,60-$day, $8\%$ note in granting Susan Allen a time extension on his past$-$due account receivable.

December $31$ Made an adjusting entry to record the accrued interest on the Allen note.

Year $2$

February $14$ Received Allen's payment of principal and interest on the note dated December $16.$

March $2$ Accepted a $$10,000,8\%,90-$day note in granting a time extension on the past$-$due account receivable from Carter Company

March $17$ Accepted a $$7,800,30-$day, $8\%$ note in granting Tony Turner a time extension on her past$-$due account receivable.

April $16$ Turner dishonored her note.

$31$ Carter Company dishonored its note.

August $7$ Accepted a $$10,000,90-$day, $8\%$ note in granting a time extension on the past$-$due account receivable of Duerr Company

September $3$ Accepted a $$12,600,60-$day, $10\%$ note in granting Spencer Lauer a time extension on his past$-$due account receivable.

November $2$ Received payment of principal plus interest from Lauer for the September $3$ note.

November $5$ Received payment of principal plus interest from Duerr for the August $7$ note.

December $1$ Wrote off the Turner account against the Allowance for Doubtful Accounts.

$$

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

Schedule of

Calculation of

Receivables

Interest

General

Trial Balance

Receivables

Interest