The following selected transactions are from Gonzalez Company. Year 1 Dec. 16 Accepted a $15, 600, 60-day, 10% note in granting Lindsey Martin a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Martin note. Year 2 Feb. 14 Received Martin's 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 Hall Co. 17 Accepted a $4,800, 30-day, 7% note in granting Carlos Sanchez a time extension on her past-due account receivable. Apr. 16 Sanchez dishonored her note. May 31 Hall Co. dishonored its note. Aug. 7 Accepted a $14,000, 90-day, 10% note in granting a time extension on the past-due account receivable of Mitchell Co. Sep. 3 Accepted a $6,600, 60-day, 10% note in granting Than Nguyen a time extension on his past-due account receivable. Nov. 2 Received payment of principal plus interest from Nguyen for the September 3 note. Nov. 5 Received payment of principal plus interest from Mitchell for the August 7 note. Dec. 1 wrote off the Sanchez account against the Allowance for Doubtful Accounts. Accounts receivable - Hall Co. 10,000 Mar 17 4,800 Notes receivable - C. Sanchez Accounts receivable - C. Sanchez 4,800 Apr 16 4,828 Accounts receivable - C. Sanchez Notes receivable - C. Sanchez 4,800 28 Interest revenue May 31 Accounts receivable - Hall Co. Notes receivable - Hall Co. Interest revenue 10,000 6 Aug 07 14,000 Notes receivable - Mitchell Accounts receivable - Mitchell 14,000 Sep 03 6,600 Notes receivable - T. Nguyen Accounts receivable - T. Nguyen 6,600 Nov 02 6,710 Cash Notes receivable - T. Nguyen Interest revenue 6,600 110 Nov 05 14,350 Cash Notes receivable - Mitchell Interest revenue 14,000 350 0 Dec 01 Allowance for doubtful accounts Account receivable - Other $ 195 $ 10,000 10.0% 90 250 $ $ 4.800 7.0% 30 $ 28 14,000 Principal x rate x days/360 = larch 2 - Hall note: Principal Interest rate Number of days' interest to be recorded in Year 2 Principal x rate x days/360 = larch 17 - Sanchez note: Principal Interest rate Number of days' interest to be recorded in Year 2 Principal x rate x days/360 = ugust 7 - Mitchell note: Principal Interest rate Number of days' interest to be recorded in Year 2 Principal x rate x days/360 = ay 31 - Hall receivable: Receivable balance Interest rate Number of days' interest to be recorded in Year 2 Principal x rate x days/360 = eptember 3 - Nguyen note: Principal Interest rate Number of days' interest to be recorded in Year 2 Principal x rate x days/360 = 10.0% 90 350 * OOOOOOO $ 10,000 10.0% 90 % 250 $ $ 6,600 10.0% 60 110 $ otal interest revenue - Year 2 $ 1.183
