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

The following selected transactions are from Griffin Company. Year 1

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

Year 2

Feb.		14			Received Turners payment of principal and interest on the note dated December 16.
Mar.		2			Accepted a $11,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Duerr Co.
		17			Accepted a $11,400, 30-day, 10% note in granting June Taylor a time extension on her past-due account receivable.
Apr.		16			Taylor dishonored her note.
May		31			Duerr Co. dishonored its note.
Aug.		7			Accepted a $22,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Lee Co.
Sep.		3			Accepted a $4,200, 60-day, 10% note in granting Lindsey Martin a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Martin for the September 3 note.
Nov.		5			Received payment of principal plus interest from Lee for the August 7 note.
Dec.		1			Wrote off the Taylor account against the Allowance for Doubtful Accounts.

repare the journal entries related to notes receivable and accounts receivable. Hint: Use the "Calculation of Interest" tab to ensure the accuracy of your entries.

No	Date	General Journal	Debit	Credit
1	Feb 14	Cash	15,552
		Interest revenue		139
		Interest receivable		50
		Notes receivable - T. Turner		14,400