GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Lee Company. Year 1 Dec. 16 31 Accepted a $22,800, 60-day, 10% note in granting Carlos Sanchez a time extension on his past-due account receivable. Made an adjusting entry to record the accrued interest on the Sanchez note. Year 2 Feb. 14 Received Sanchez's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $11,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Mitchell Co. 17 Accepted a $8,400, 30-day, 7% note in granting Paula Parker a time extension on her past-due account receivable. Apr. 16 Parker dishonored her note. May 31 Mitchell Co. dishonored its note. Aug. 7 Accepted a $12,000, 90-day, 6% note in granting a time extension on the past-due account receivable of King Co. Sep. 3 Accepted a $13,800, 60-day, 10% note in granting Sarah Walker a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Walker for the September 3 note. Nov. 5 Received payment of principal plus interest from King for the August 7 note. Dec. Wrote off the Parker account against the Allowance for Doubtful Accounts. 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. . View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 Feb 14 Cash 22.800 380 Interest revenue Interest receivable Notes receivable - C. Sanchez Date Lee Co. Calculation of interest revenue February 14 - Sanchez 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
