Question
The following selected transactions are from Wilson Company. Year 1 Dec. 16 Accepted a $19,200, 60-day, 10% note in granting Debbie Hall a time extension
The following selected transactions are from Wilson Company. Year 1
Dec. | 16 | Accepted a $19,200, 60-day, 10% note in granting Debbie Hall a time extension on his past-due account receivable. | |||
31 | Made an adjusting entry to record the accrued interest on the Hall note. |
Year 2
Feb. | 14 | Received Halls payment of principal and interest on the note dated December 16. | |||
Mar. | 2 | Accepted a $8,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Sanchez Co. | |||
17 | Accepted a $6,600, 30-day, 10% note in granting Rick Mitchell a time extension on her past-due account receivable. | ||||
Apr. | 16 | Mitchell dishonored her note. | |||
May | 31 | Sanchez Co. dishonored its note. | |||
Aug. | 7 | Accepted a $20,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Parker Co. | |||
Sep. | 3 | Accepted a $10,200, 60-day, 10% note in granting Jean Clark a time extension on his past-due account receivable. | |||
Nov. | 2 | Received payment of principal plus interest from Clark for the September 3 note. | |||
Nov. | 5 | Received payment of principal plus interest from Parker for the August 7 note. | |||
Dec. | 1 | Wrote off the Mitchell 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.Feb. 14 Received
Hall's payment of principal and interest on the $19,200, 60-day, 10% note dated December 16. The Wilson Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab.
Mar. 2 Accepted an $8,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Sanchez Co.
Mar. 17 Accepted a $6,600, 30-day, 10% note in granting Rick Mitchell a time extension on her past-due account receivable.
Apr. 16 Mitchell dishonored her note.
May 31 Sanchez Co. dishonored its note.
Aug. 7 Accepted a(n) $20,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Parker Co.
Sept. 3 Accepted a $10,200, 60-day, 10% note in granting Jean Clark a time extension on his past-due account receivable.
Nov. 2 Received payment of principal plus interest from Clark for the September 3 note.
Nov. 5 Received payment of principal plus interest from Parker for the August 7 note.
Dec. 1 Wrote off the Mitchell account against Allowance for Doubtful Accounts. No additional interest was accrued.
Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that total interest revenue agrees with the trial balance.
Dates:Jan 01 to: Dec 31
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