Problem $7-5$A $($Algo$)$ Analyzing and journalizing notes receivable transactions LO C$2,$ C$3,$ P$4$

The following transactions are from Ohlm Company.

Note: Use $360$ days a year.

Year $1$

December $16$ Accepted a$($n$)$ $$10,600,60-$day, $7\%$ note in granting Danny Todd a time extension on his past$-$due account receivable.

December $31$ Made an adjusting entry to record the accrued interest on the Todd note.

Year $2$

February $14$ Received Todd$$s payment of principal and interest on the note dated December $16.$

March $2$ Accepted a$($n$)$ $$6,600,7\%,90-$day note in granting a time extension on the past$-$due account receivable from Midnight Company.

March $17$ Accepted a $$3,800,30-$day, $7\%$ note in granting Ava Privet a time extension on her past$-$due account receivable.

April $16$ Privet dishonored her note.

May $31$ Midnight Company dishonored its note.

August $7$ Accepted a$($n$)$ $$8,800,90-$day, $12\%$ note in granting a time extension on the past$-$due account receivable of Mulan Company.

September $3$ Accepted a $$2,940,60-$day, $10\%$ note in granting Noah Carson a time extension on his past$-$due account receivable.

November $2$ Received payment of principal plus interest from Carson for the September $3$ note.

November $5$ Received payment of principal plus interest from Mulan for the August $7$ note.

December $1$ Wrote off the Privet account against the Allowance for Doubtful Accounts.

Required:

$1-$a$.$ First, complete the table below to calculate the interest amount at December $31,$ Year $1.$

$1-$b$.$ Use the calculated value to prepare your journal entries for Year $1$ transactions.

$1-$c$.$ First, complete the table below to calculate the interest amounts.

$1-$d$.$ Use those calculated values to prepare your journal entries for Year $2$ transactions.

$2.$ If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?