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The following selected transactions are from Carter Company. Year 1 Dec. 16 Accepted a $19,200, 60-day, 10% note in granting Robert King a time extension
The following selected transactions are from Carter Company. Year 1
Dec. | 16 | Accepted a $19,200, 60-day, 10% note in granting Robert King a time extension on his past-due account receivable. | |||
31 | Made an adjusting entry to record the accrued interest on the King note. |
Year 2
Feb. | 14 | Received Kings payment of principal and interest on the note dated December 16. | |||
Mar. | 2 | Accepted a $10,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Nguyen Co. | |||
17 | Accepted a $13,800, 30-day, 10% note in granting Edward Lee a time extension on her past-due account receivable. | ||||
Apr. | 16 | Lee dishonored her note. | |||
May | 31 | Nguyen Co. dishonored its note. | |||
Aug. | 7 | Accepted a $16,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Walker Co. | |||
Sep. | 3 | Accepted a $9,000, 60-day, 10% note in granting Rita Griffin a time extension on his past-due account receivable. | |||
Nov. | 2 | Received payment of principal plus interest from Griffin for the September 3 note. | |||
Nov. | 5 | Received payment of principal plus interest from Walker for the August 7 note. | |||
Dec. | 1 | Wrote off the Lee account against the Allowance for Doubtful Accounts. |
Feb. 14 Received King's payment of principal and interest on the $19,200, 60-day, 10% note dated December 16. The Carter Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab.
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