GL0701 - Based on Problem 7-5A LO C2, C3, P4 The following selected transactions are from Clark Company. Year 1 Dec. 16 31 Accepted a $14,400, 60-day, 8% note in granting Hao Lee a time extension on his past-due account receivable. Made an adjusting entry to record the accrued interest on the Lee note. Year 2 Feb. 14 Mar. 2 17 Apr. 16 May 31 Aug. Sep. Received Lee's payment of principal and interest on the note dated December 16. Accepted a $9,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Taylor Co. Accepted a $4,200, 30-day, 10% note in granting Susan Allen a time extension on her past-due account receivable. Allen dishonored her note. Taylor Co. dishonored its note. Accepted a $12,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Carter Co. Accepted a $5,400, 60-day, 10% note in granting June Taylor a time extension on his past-due account receivable. Received payment of principal plus interest from Taylor for the September 3 note. Received payment of principal plus interest from Carter for the August 7 note. Wrote off the Allen account against the Allowance for Doubtful Accounts. Nov. Nov. Dec. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Clark Co. Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest revenue agrees with the trial balance. Nov. Dec. 5 Received payment of principal plus interest from Carter for the August 7 note. 1 Wrote off the Allen 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. View transaction list Journal entry worksheet Feb. 14 Received Lee's payment of principal and interest on the $14,400, 60- day, 8% note dated December 16. The Clark 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 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest General Ledger Account Cash Account receivable - Other No. Debit Credit No. Debit Credit Date Jan 01 Balance 16,852 Date Jan 01 Balance 38,100 Accounts receivable - J. Taylor Accounts receivable - Taylor Co. No. Debit Credit No. Debit Credit Date Jan 01 Balance 5,400 Date Jan 01 Balance 9,000 Accounts receivable - Carter Accounts receivable - S. Allen Debit Credit No. Date Debit Credit No. Date Balance 12,000 Balance 4,200 Jan 01 Jan 01 Allowance for doubtful accounts Notes receivable - H. Lee No. Debit Credit No. Debit Credit Date Jan 01 Balance 6,000 Date Jan 01 Balance 14,400 Interest receivable Merchandise inventory No. Date Debit Credit No. Date Debit Credit Balance 48 Balance 5,000 Jan 01 Jan 01 Owner's Capital No. Debit Credit Date Jan 01 Balance 99,000 NOV. Dec. Received payment OT principas plus erest Trom the Augusti note. 1 Wrote off the Allen account against the Allowance for Doubtful Accounts. Requirement General Journal General Ledger Trial Balance Schedule of Calculation of Receivables Interest Clark Company Trial Balance December 01, 2019 Account Title Debit Credit $ 16.852 38,100 5,400 9,000 12,000 4,200 Cash Account receivable - Other Accounts receivable - J. Taylor Accounts receivable - Taylor Co. Accounts receivable - Carter Accounts receivable - S. Allen Allowance for doubtful accounts Notes receivable - H. Lee Interest receivable Merchandise inventory Owner's Capital Total 6,000 14,400 48 5,000 99,000 105,000 105,000 $ Requirement General Journal General Ledger Trial Balance Schedule of Receivables Calculation of Interest Here are the balances in Accounts and Notes receivable based on your journal entries: Dates: Jan 01 to: Dec 31 Clark Co. $ Schedule of Accounts Receivable Accounts receivable - J. Taylor Accounts receivable - Taylor Co. Accounts receivable - Carter Accounts receivable - S. Allen Total accounts receivable 5,400 9,000 12,000 4.200 30.600 $ Clark Co. Schedule of Notes Receivable Notes receivable - H. Lee Total accounts receivable 14.400 14,400 $ Trial Balance Calculation of Interest > 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. Dates: Jan 01 to: Dec 31 Clark Co. Calculation of interest revenue February 14 - Lee note: Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Principal Interest rate Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Number of days' interest to be recorded in Year 2 Total interest revenue - Year 2