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

The following selected transactions are from Perry Company.

2016
Dec.		16			Accepted a $14,400, 60-day, 8% note dated this day in granting Maria Gonzalez a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Gonzalez note.

2017
Feb.		14			Received Gonzalezs payment of principal and interest on the note dated December 16.
Mar.		2			Accepted a $8,000, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Wilson Co.
		17			Accepted a $18,600, 30-day, 10% note dated this day in granting Hao Lee a time extension on her past-due account receivable.
Apr.		16			Lee dishonored her note when presented for payment.
May		31			Wilson Co. refused to pay the note that was due to Perry Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Wilson Co.s accounts receivable.
July		16			Received payment from Wilson Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 8%.
Aug.		7			Accepted a $18,000, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Hall Co.
Sep.		3			Accepted a $3,000, 60-day, 10% note dated this day in granting Paula Parker a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Parker for the September 3 note.
Nov.		5			Received payment of principal plus interest from Hall for the August 7 note.
Dec.		1			Wrote off the Lee account against the Allowance for Doubtful Accounts.

Feb. 14 Received Gonzalez's payment of principal and interest on the $14,400, 60-day, 8% note dated December 16. The Perry Company does not prepare reversing entries. Verify the amount of interest using the "CALCULATION OF INTEREST" tab.

2

Mar. 2 Accepted an $8,000, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Wilson Co.

3

Mar. 17 Accepted a $18,600, 30-day, 10% note dated this day in granting Hao Lee a time extension on her past-due account receivable.

4

Apr. 16 Lee dishonored her note when presented for payment.

5

May 31 Wilson Co. refuses to pay the note that was due to Perry Co. on May 31. Prepare the journal entry to charge the dishonored note plus accrued interest to Wilson Co.'s accounts receivable.

6

Jul. 16 Received payment from Wilson Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at 8%. (Round interest to the nearest whole dollar.)

7

Aug. 7 Accepted a(n) $18,000, 90-day, 12% note dated this day in granting a time extension on the past-due account receivable of Hall Co.

8

Sept. 3 Accepted a $3,000, 60-day, 10% note dated this day in granting Paula Parker a time extension on his past-due account receivable.

9

Nov. 2 Received payment of principal plus interest from Parker for the September 3 note.

10

Nov. 5 Received payment of principal plus interest from Hall for the August 7 note.

11

Dec. 1 Wrote off the Lee account against Allowance for Doubtful Accounts. No additional interest was accrued.

Note : = journal entry has been entered

*Please help to complete "Journal entry worksheet"

......................................................................................

Feb. 14 Received Gonzalez's payment of principal and interest on the $14,400, 60-day, 8% note dated December 16. The Perry 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	Cash
	Interest receivable
	Interest revenue
	Notes receivable - M. Gonzalez		14,400