GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Taylor Company. Year 1 Dec. 16 Accepted a $12,080, 60-day, 18% note in granting Rick Mitchell a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Mitchell note. Year 2 Feb. 14 Received Mitchell's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $9,800, 1806, 90-day note in granting a time extension on the past-due account receivable from Parker Co. 17 Accepted a $10,200, 30-day, ss note in granting Robert King a time extension on her past-due account receivable. Apr. 16 King dishonored her note. May 31 Parker Co. dishonored its note. Aug. 7 Accepted a $18,888, 98-day, 8% note in granting a tine extension on the past-due account receivable of Nguyen Co. Sep. 3 Accepted a $17,480, 60-day, 18 note in granting Juan Perez a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Perez for the September 3 note. Nov 5 Received payment of principal plus interest from Nguyen for the August 7 note. Dec. 1 Wrote off the King account against the Allowance for Doubtful Accounts. Answer is not complete. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Taylor Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest revenue agrees with the trial balance. General General Schedule of Requirement Trial Balance Calculation of Journal Ledger Receivables 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 General Journal Credit Debit 50 1 Feb 14 Interest receivable Interest revenue . 50 X Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest General Ledger Account Cash Account receivable - Other Debit Credit No. Debit Credit No. Date Jan 01 Balance 20, 250 Date Jan 01 Balance 40,100 Accounts receivable - Parker Co. No. Accounts receivable - J. Perez Date Debit Credit Jan 01 No. Debit Credit Balance 17.400 Date Jan 01 Balance 9,000 No. Accounts receivable - Nguyen Date Debit Credit Jan 01 No. Balance 18,000 Accounts receivable - R. King Date Debit Credit Jan 01 Balance 10,200 No. Allowance for doubtful accounts Date Debit Credit Jan 01 No. Balance 13,000 Notes receivable - R. Mitchell Date Debit Credit Jan 01 Balance 12.000 Interest receivable Debit Credit Merchandise inventory Debit Credit No. No. Date Jan 01 Feb 14 Balance 50 100 Date Jan 01 Balance 5,000 1 50 Owner's Capital Credit Interest revenue Debit Credit No Debit No. Date Jan 01 Balance 119,000 Date Jan 01 Feb 14 Balance 0 50 1 50 Answer is not complete. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Receivables Interest No Entry Required Taylor Company Trial Balance December 01, 2019 Account Title Credit $ Debit 20,250 40,100 17,400 9,000 18,000 10,200 Cash Account receivable - Other Accounts receivable - J. Perez Accounts receivable - Parker Co. Accounts receivable - Nguyen Accounts receivable - R. King Allowance for doubtful accounts Notes receivable - R. Mitchell Interest receivable Merchandise inventory Owner's Capital Interest revenue 13,000 12.000 100 5,000 119,000 50 132,060 Total $ 132,050 $ Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Here are the balances in Accounts and Notes receivable based on your journal entries: Dates: Jan 01 to! Dec 31 S Taylor Co. Schedule of Accounts Receivable Accounts receivable - J. Perez Accounts receivable - Parker Co. Accounts receivable - Nguyen Accounts receivable - R. King Total accounts receivable 17.400 9,000 18,000 10.200 54.600 S Taylor Co. Schedule of Notes Receivable Notes receivable - R. Mitchell Total accounts receivable 12.000 12.000 S 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 each note. Verify that total interest revenue agrees with the trial balance. Dates: Jan 01 to! Dec 31 Taylor Co. Calculation of interest revenue February 14 - Mitchell 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 Total interest revenue - Year 2 0