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The following selected transactions are from King Company. Year 1 December 16 Accepted a $13,200, 60-day, 12% note in granting Jean Clark a time extension
The following selected transactions are from King Company.
Year 1
December 16 | Accepted a $13,200, 60-day, 12% note in granting Jean Clark a time extension on his past-due account receivable. |
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December 31 | Made an adjusting entry to record the accrued interest on the Clark note. |
Year 2
February 14 | Received Clarks payment of principal and interest on the note dated December 16. |
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March 2 | Accepted a $7,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Walker Company |
March 17 | Accepted a $18,000, 30-day, 7% note in granting Juan Perez a time extension on her past-due account receivable. |
April 16 | Perez dishonored her note. |
31 | Walker Company dishonored its note. |
August 7 | Accepted a $16,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Taylor Company |
September 3 | Accepted a $17,400, 60-day, 10% note in granting Tony Turner a time extension on his past-due account receivable. |
November 2 | Received payment of principal plus interest from Turner for the September 3 note. |
November 5 | Received payment of principal plus interest from Taylor for the August 7 note. |
December 1 | Wrote off the Perez account against the Allowance for Doubtful Accounts. |
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