Year 1

Dec.		16			Accepted a $14,400, 60-day, 8% note in granting Hao Lee a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Lee note.

Year 2

Feb.		14			Received Lees payment of principal and interest on the note dated December 16.
Mar.		2			Accepted a $9,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Taylor Co.
		17			Accepted a $4,200, 30-day, 10% note in granting Susan Allen a time extension on her past-due account receivable.
Apr.		16			Allen dishonored her note.
May		31			Taylor Co. dishonored its note.
Aug.		7			Accepted a $12,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Carter Co.
Sep.		3			Accepted a $5,400, 60-day, 10% note in granting June Taylor a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Taylor for the September 3 note.
Nov.		5			Received payment of principal plus interest from Carter for the August 7 note.
Dec.		1			Wrote off the Allen account against the Allowance for Doubtful Accounts.

General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Clark Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest revenue agrees with the trial balance.