The following selected transactions are from Perry Company.The following selected transactions are from Perry Company.

Year $1$

December $16$ Accepted a $$14,400,60-$day, $8\%$ note in granting Maria Gonzalez a time extension on his past$-$due account receivable.

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

Year $2$

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

March $2$ Accepted a $$8,000,8\%,90-$day note in granting a time extension on the past$-$due account receivable from Wilson Company

March $17$ Accepted a $$18,600,30-$day, $10\%$ note in granting Hao Lee a time extension on her past$-$due account receivable.

April $16$ Lee dishonored her note.

$31$ Wilson Company dishonored its note.

August $7$ Accepted a $$18,000,90-$day, $12\%$ note in granting a time extension on the past$-$due account receivable of Hall Company

September $3$ Accepted a $$3,000,60-$day, $10\%$ note in granting Paula Parker a time extension on his past$-$due account receivable.

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

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

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

Prepare the journal entries related to notes receivable and accounts receivable. Hint: Use the "Calculation of Interest" tab to

ensure the accuracy of your entries.

Journal entry worksheet

February $14$ Received Gonzalez's payment of principal and interest on the

$$14,400,60-$day, $8\%$ note dated December $16.$ The Perry Company does not

prepare reversing entries. Verify the amount of interest using the

"CALCULATION OF INTEREST" tab.

Note: Enter debits before credits.

Year $1$

December $16$ Accepted a $$14,400,60-$day, $8\%$ note in granting Maria Gonzalez a time extension on his past$-$due account receivable.

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

Year $2$

General Journal tab $-$ Journalize the transactions related to the notes and accounts receivable of Perry Co$.$ The General

Ledger, Trial Balance and Schedule of Payables will be updated based on your entries.

General Ledger ta $b-$ One of the advantages of general ledger software is that posting is done automatically. To see the

detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the

General Ledger tab.

Trial Balance tab $-$ General ledger software also automates the preparation of trial balances. A trial balance lists each

account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total

credits.

Schedule of Receivables tab $-$ General ledger software automates the preparation of the Schedule of Receivables which

lists the amounts of accounts receivable and notes receivable owed from each customer.

Calculation of interest tab $-$ Use the interest formula $(PRT$ to verify the amount of interest recorded in your entries.

Verify that total interest revenue agrees with the trial balance.