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

The following selected transactions are from Lee Company. Year 1

December 16	Accepted a $21,600, 60-day, 8% note in granting June Taylor a time extension on his past-due account receivable.
December 31	Made an adjusting entry to record the accrued interest on the Taylor note.

Year 2

February 14	Received Taylors payment of principal and interest on the note dated December 16.
March 2	Accepted a $7,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Brown Company
March 17	Accepted a $15,000, 30-day, 8% note in granting Maria Gonzalez a time extension on her past-due account receivable.
April 16	Gonzalez dishonored her note.
31	Brown Company dishonored its note.
August 7	Accepted a $20,000, 90-day, 8% note in granting a time extension on the past-due account receivable of Garcia Company
September 3	Accepted a $11,400, 60-day, 10% note in granting Carlos Sanchez a time extension on his past-due account receivable.
November 2	Received payment of principal plus interest from Sanchez for the September 3 note.
November 5	Received payment of principal plus interest from Garcia for the August 7 note.
December 1	Wrote off the Gonzalez account against the Allowance for Doubtful Accounts.