GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Wright Company. Year 1 Dec. 16 Accepted a $18,000, 60-day, 88 note in granting Melanie Duerr a time extension on his past-due account receivable. Made an adjusting entry to record the accrued interest on the Duerr note. 31 Year 2 Feb. 14 Mar. 2 17 Apr. 16 May 31 Aug. 7 Received Duerr's payment of principal and interest on the note dated December 16. Accepted a $9,000, 88, 90-day note in granting a time extension on the past-due account receivable from Taylor Co. Accepted a $13,200, 30-day, 76 note in granting Paul Brown a time extension on her past-due account receivable. Brown dishonored her note. Taylor Co. dishonored its note. Accepted a $14,000, 90-day, 66 note in granting a time extension on the past-due account receivable of Lauer Co. Accepted a $7,800, 60-day, 108 note in granting Debbie Hall a time extension on his past-due account receivable. Received payment of principal plus interest from Hall for the September 3 note. Received payment of principal plus interest from Lauer for the August 7 note. Wrote off the Brown account against the Allowance for Doubtful Accounts. Sep. 3 Nov. Nov. Dec. 2 5 1 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 Credit Feb 14 18,240 General Journal Cash Interest receivable Notes receivable - M. Duerr Interest revenue 60 18,000 180 2 Mar 02 9,000 Notes receivable - Taylor Co. Accounts payable - Taylor Co. 9,000 3 Mar 17 13,200 Notes receivable - P. Brown Accounts receivable - P. Brown 13,200 4 Apr 16 13,277 Accounts receivable - P. Brown Notes receivable - P. Brown Interest revenue 13,200 77 5 May 31 9,180 Accounts receivable - Taylor Co. Notes receivable - Taylor Co. Interest revenue 9,000 180 6 Aug 07 14,000 Notes receivable - Lauer Accounts receivable - Lauer 14,000 7 Sep 03 7,800 Notes receivable - D. Hall Accounts receivable - D. Hall 7,800 8 Nov 02 Cash 1,930 Notes receivable - D. Hall 7,800 Interest revenue 130 9 Nov 05 Cash 14,210 Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Wright Company Trial Balance December 01, 2019 Account Title Debit Credit $ 77,220 41,100 18,180 2,723 Cash Account receivable - Other Accounts receivable - Taylor Co. Allowance for doubtful accounts Merchandise inventory Accounts payable - Taylor Co. Owner's Capital Interest revenue Total 5,000 9,000 129,000 777 141,500 141,500 $ General Ledger Schedule of Receivables Answer is not complete. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Receivables Interest Here are the balances in Accounts and Notes receivable based on your journal entries: Dates: Jan 01 to: Dec 31 Wright Co. Schedule of Accounts Receivable Accounts receivable - D. Hall Accounts receivable - Taylor Co. Total accounts receivable 0 18,180 18,180 Wright Co. Schedule of Notes Receivable Notes receivable - D. Hall Total accounts receivable $ 0 IS 0 Trial Balance Calculation of Interest > LU. Dec 31 Wright Co. Calculation of interest revenue February 14 - Duerr 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 Number of days' interest to be recorded in Year 2 18,000 8.0% 240 x $ 960 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 Total interest revenue - Year 2 960 Schedule of Receivables Calculation of Interest >
