Year 1

Dec.		16			Accepted a $22,800, 60-day, 10% note in granting Than Nguyen a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Nguyen note.

Year 2

Feb.		14			Received Nguyens 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 Lee Co.
		17			Accepted a $15,600, 30-day, 7% note in granting Spencer Lauer a time extension on her past-due account receivable.
Apr.		16			Lauer dishonored her note.
May		31			Lee Co. dishonored its note.
Aug.		7			Accepted a $22,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Perez Co.
Sep.		3			Accepted a $12,600, 60-day, 10% note in granting Kay Wright a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Wright for the September 3 note.
Nov.		5			Received payment of principal plus interest from Perez for the August 7 note.
Dec.		1			Wrote off the Lauer account against the Allowance for Doubtful Accounts.

Turner Co. Calculation of interest revenue February 14 - Nguyen note: $ 22,800 10.0% 45 Principal Interest rate Number of days' interest to be recorded in Year 2 Principal x rate x days/360 = March 2 - Lee note: Principal Interest rate $ 285 $ 8,000 10.0% Number of days' interest to be recorded in Year 2 Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Total interest revenue - Year 2 $ 285