Exercise $7-19$

Notes receivable transactions

P$4$

Refer to the information in Exercise $7-18$ and prepare the journal entries for the following year for Danica Company.

Jan. $27$Received Lee's payment for principal and interest on the note dated December $13.$

Chieck Jan. $27,$ Dr$.$ Cash, $$9,595$

June $1,$ Dr$.$ Cash, $$5,125$

Mar. $3$ Accepted a $$5,000,10\%,90-$day note in granting a time extension on the past$-$due account receivable of Tomas Company.

$17$ Accepted a $$2,000,30-$day, $9\%$ note in granting H$.$ Cheng a time extension on his past$-$due account receivable.

Apr. $16$Cheng dishonored his note.

May $1$ Wrote off the Cheng account against the Allowance for Doubtful Accounts.

June $1$ Received the Tomas payment for principal and interest on the note dated March $3.$