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

The following selected transactions are from Allen Company. Year 1

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

Year 2

Feb.		14			Received Parkers payment of principal and interest on the note dated December 16.
Mar.		2			Accepted a $7,000, 10%, 90-day note in granting a time extension on the past-due account receivable from King Co.
		17			Accepted a $12,000, 30-day, 7% note in granting Than Nguyen a time extension on her past-due account receivable.
Apr.		16			Nguyen dishonored her note.
May		31			King Co. dishonored its note.
Aug.		7			Accepted a $10,000, 90-day, 10% note in granting a time extension on the past-due account receivable of Clark Co.
Sep.		3			Accepted a $5,400, 60-day, 10% note in granting Leslie Stone a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Stone for the September 3 note.
Nov.		5			Received payment of principal plus interest from Clark for the August 7 note.
Dec.		1			Wrote off the Nguyen account against the Allowance for Doubtful Accounts.

Feb. 14 Received Parker's payment of principal and interest on the $15,600, 60-day, 10% note dated December 16. The Allen Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab.

Note: Enter debits before credits.

• Feb. 14 Received Parker's payment of principal and interest on the $15,600, 60-day, 10% note dated December 16. The Allen Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Feb 14

Requirement, General Journal, General Ledger, Trial Balance, Schedule of Receivables, Calculation of Interest