GL0701 (Algo) - Based on Problem 7-5A LO C2, C3, P4

The following selected transactions are from Martin Company.

Year 1

December 16	Accepted a $24,000, 60-day, 12% note in granting Kay Wright a time extension on his past-due account receivable.
December 31	Made an adjusting entry to record the accrued interest on the Wright note.

Year 2

February 14	Received Wrights 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 Lee Company
March 17	Accepted a $9,000, 30-day, 10% note in granting Carolyn Collins a time extension on her past-due account receivable.
April 16	Collins dishonored her note.
31	Lee Company dishonored its note.
August 7	Accepted a $14,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Perry Company
September 3	Accepted a $15,000, 60-day, 10% note in granting Jeffrey Wilson a time extension on his past-due account receivable.
November 2	Received payment of principal plus interest from Wilson for the September 3 note.
November 5	Received payment of principal plus interest from Perry for the August 7 note.
December 1	Wrote off the Collins account against the Allowance for Doubtful Accounts.