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

The following selected transactions are from Stone Company.

Year 1

Dec. 16 Accepted a $25,200, 60-day, 8% note in granting Isaac Carter a time extension on his past-due account receivable.

31 Made an adjusting entry to record the accrued interest on the Carter note.

Year 2

Feb. 14 Received Carters payment of principal and interest on the note dated December 16.

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

Mar. 17 Accepted a $9,600, 30-day, 7% note in granting Melanie Duerr a time extension on her past-due account receivable.

Apr. 16 Duerr dishonored her note.

May 31 Turner Co. dishonored its note.

Aug. 7 Accepted a $16,000, 90-day, 10% note in granting a time extension on the past-due account receivable of Taylor Co.

Sep. 3 Accepted a $16,200, 60-day, 10% note in granting Jose Garcia a time extension on his past-due account receivable.

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

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

Dec. 1 Wrote off the Duerr account against the Allowance for Doubtful Accounts.

Interest revenue Interest receivable 252 84 25,200 Notes receivable - I. Carter Mar 02 Notes receivable - Turner Co. Accounts receivable - Turner Co. Mar 17 Cash Apr 16 Cash 5 May 31 Cash Aug 07 Cash Sep 03 Cash Nov 02 Cash Nov 05 Cash 10 Dec 01 Cash