GL$0701($Algo$)-$ Based on Problem $7-5$A LO C$2,$ C$3,$ P$4$

The following selected transactions are from King Company.

Year $1$

December $16$ Accepted a $$13,200,60-$day, $12\%$ note in granting Jean Clark a time extension on his past$-$due account

receivable.

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

Year $2$

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

March $2$ Accepted a $$7,000,6\%,90-$day note in granting a time extension on the past$-$due account receivable from

Walker Company

March $17$ Accepted a $$18,000,30-$day, $7\%$ note in granting Juan Perez a time extension on her past$-$due account

receivable.

April $16$ Perez dishonored her note.

$31$ Walker Company dishonored its note.

August $7$ Accepted a $$16,000,90-$day, $6\%$ note in granting a time extension on the past$-$due account receivable of

Taylor Company

September $3$ Accepted a $$17,400,60-$day, $10\%$ note in granting Tony Turner a time extension on his past$-$due account

receivable.

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

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

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