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

The following selected transactions are from Gonzalez Company. Year 1

December 16	Accepted a $15,600, 60-day, 10% note in granting Lindsey Martin a time extension on his past-due account receivable.
December 31	Made an adjusting entry to record the accrued interest on the Martin note.

Year 2

February 14	Received Martins payment of principal and interest on the note dated December 16.
March 2	Accepted a $10,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Hall Company
March 17	Accepted a $4,800, 30-day, 7% note in granting Carlos Sanchez a time extension on her past-due account receivable.
April 16	Sanchez dishonored her note.
31	Hall Company dishonored its note.
August 7	Accepted a $14,000, 90-day, 10% note in granting a time extension on the past-due account receivable of Mitchell Company
September 3	Accepted a $6,600, 60-day, 10% note in granting Than Nguyen a time extension on his past-due account receivable.
November 2	Received payment of principal plus interest from Nguyen for the September 3 note.
November 5	Received payment of principal plus interest from Mitchell for the August 7 note.
December 1	Wrote off the Sanchez account against the Allowance for Doubtful Accounts.

• Requirement
• General Journal
• General Ledger
• Trial Balance
• Schedule of Receivables
• Calculation of 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.