GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Lee Company. Year 1 Dec. 16 Accepted a $21,680, 60-day, 8% note in granting June Taylor a time extension on his past-due account 31 Made an adjusting entry to record the accrued interest on the Taylor note. Year 2 Feb. 14 Received Taylor's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $7,080, 84, 90-day note in granting a time extension on the past-due account receivable from Brown Co. 17 Accepted a $15,888, 38-day, 8% note in granting Maria Gonzalez a time extension on her past-due account receivable. Apr. 16 Gonzalez dishonored her note. May 31 Brown Co. dishonored its note. Aug. 7 Accepted a $20,000, 90-day, 8% note in granting a time extension on the past-due account receivable of Garcia Co. Sep. 3 Accepted a $11,400, 60-day, 18% note in granting Carlos Sanchez a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Sanchez for the September 3 note. 5 Received payment of principal plus interest from Garcia for the August 7 note. Dec. 1 Wrote off the Gonzalez account against the Allowance for Doubtful Accounts. Nov Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Prepare the journal entries related to notes receivable and accounts receivable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries. View transaction list Journal entry iworksheet 1 10 Dates: Jan 0 Lee Co. Calculation of interest revenue February 14 - Taylor note: Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Total interest revenue - Year 2 $ 0