GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Clark Company Year 1 Dec. 16 Accepted a $14, 400, 60-day, 8% note in granting Hao Lee a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Lee note. Year 2 Feb. 14 Received Lee's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $9,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Taylor Co. 17 Accepted a $4,200, 30-day, 10% note in granting Susan Allen a time extension on her past-due account receivable. Apr. 16 Allen dishonored her note. May 31 Taylor Co. dishonored its note. Aug. 7 Accepted a $12,000, 90-day, 12% note in granting a time extension on the past due account receivable of Carter Co. Sep. 3 Accepted a $5,400, 60-day, 10% note in granting June Taylor a time extension on his past-due account receivable Nov. 2 Received payment of principal plus interest from Taylor for the September 3 note. 5 Received payment of principal plus interest from Carter for the August 7 note. Dec. 1 Wrote off the Allen account against the Allowance for Doubtful Accounts. Nov. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Receivables Interest Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that Prey 1 of 1 Next Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Enter the principal amount, interest rate, and number of days of interest to be recorded for e total interest revenue agrees with the trial balance. Dates: Jan 01 $ 14,400 8.0% Clark Co. Calculation of interest revenue February 14 - Lee note: Principal Interest rate Number of days interest to be recorded in Year 2 Principal x rate x days/360 = March 2 - Taylor note: Principal Interest rate 60 192 $ $ 8,000 X 8.0% 1 of 1 Next 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. No Date Debit 1 Feb 14 Credit General Journal Cash Interest revenue Interest receivable Notes receivable - H. Lee 14,589 139 50 14.400 Prev 1 of 1 Next