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

The following selected transactions are from Sanchez Company.

Year $1$

December $16$ Accepted a $$16,800,60-$day, $12\%$ note in granting Carolyn Collins a time extension on his past$-$due account receivable.

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

Year $2$

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

March $2$ Accepted a $$8,000,6\%,90-$day note in granting a time extension on the past$-$due account receivable from Perry Company

March $17$ Accepted a $$12,600,30-$day, $8\%$ note in granting Jim Ohlm a time extension on her past$-$due account receivable.

April $16$ ohlm dishonored her note.

$31$ Perry Company dishonored its note.

August $7$ Accepted a $$12,000,90-$day, $8\%$ note in granting a time extension on the past$-$due account receivable of Gonzalez Company

September $3$ Accepted a $$6,600,60-$day, $10\%$ note in granting Greg Taylor a time extension on his past$-$due account receivable.

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

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

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

Requirement

General

General

Schedule of

Calculation of

Journal

Ledger

Trial Balance

Receivables

Interest

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.

Journal entry worksheet

February $14$ Received Collins's payment of principal and interest on the

$$16,800,60-$day, $12\%$ note dated December $16.$ The Sanchez Company does

not prepare reversing entries. Verify the amount of interest using the

"CALCULATION OF INTEREST" tab.

Note: Enter debits before credits. Here are the balances in Accounts and Notes receivable based on your journal entries:

Dates:

to: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.