Mar.

2

Accepted a $7,000, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Brown Co.

May

31

Brown Co. refused to pay the note that was due to Lee Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Brown Co.s accounts receivable.

What would the General Journal entries look like for both transactions?