GLO701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Allen Company Year 1 Dec. 16 Accepted a $15, 600, 60-day, 10% note in granting Paula Parker a time extension on his past due account receivable. 31 Made an adjusting entry to record the accrued interest on the Parker note. Year 2 Feb. 14 Received Parker's payment of principal and interest on the note dated December 16. Mar. 2 Accepted a $7,000, 10%, 90-day note in granting a tine extension on the past due account receivable from King Co. Accepted a $12,000, 30-day, 7% note in granting Than Nguyen a time extension on her past.due account receivable. Apr. 16 Nguyen dishonored her note. May 31 King Co. dishonored its note. Aug. 7 Accepted a $10,000, 90-day, 10% note in granting a time extension on the past.due account receivable of Clark Sep. 3 Accepted a $5,400, 60-day, 10% note in granting Leslie Stone a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Stone for the September 3 note. Nov. 5 Received payment of principal plus interest from Clark for the August 7 note. Dec. 1 wrote off the Nguyen account against the Allowance for Doubtful Accounts. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Journal entry worksheet Mar. 2 Accepted an $7,000, 10%, 90-day note in granting a time extension on the past-due account receivable from King Co. Note: Enter debits before credits Date General Journal Debit Credit Mar 02 Record entry Clear entry View general journal Journal entry worksheet Mar. 17 Accepted a $12,000, 30-day, 7% note in granting Than Nguyen a time extension on her past-due account receivable. Note: Enter debits before credits. General Journal Debit Credit Date Mar 17 Record entry Clear entry View general journal Journal entry worksheet Nov. 5 Received payment of principal plus interest from Clark for the August 7 note. Note: Enter debits before credits. General Journal Debit Credit Date Nov 05 Record entry Clear entry View general joumal Journal entry worksheet Dates: Jan 01 to: Dec 3 Allen Co. Schedule of Accounts Receivable Accounts receivable - L. Stone Accounts receivable - King Co. 5,400 7.000 10,000 12,000 34,400 Accounts receivable - T. Nguyen Total accounts receivable Allen Co. Schedule of Notes Receivable Total accounts receivable 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 Calculation of interest revenue February 14 - Parker 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 Princapai 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
