The following selected transactions are from Carter Company. Year 1 December 16 Accepted a $19,200, 60-day,...

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The following selected transactions are from Carter Company. Year 1 December 16 Accepted a $19,200, 60-day, 10% note in granting Robert King a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the King note. Year 2 February 14 Received King's payment of principal and interest on the note dated December 16. March 2 Accepted a $10,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Nguyen Company March 17 Accepted a $13,800, 30-day, 10% note in granting Edward Lee a time extension on her past-due account receivable. April 16 Lee dishonored her note. 31 Nguyen Company dishonored its note. August 7 Accepted a $16,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Walker Company September 3 Accepted a $9,000, 60-day, 10% note in granting Rita Griffin a time extension on his past-due account receivable. November 2 Received payment of principal plus interest from Griffin for the September 3 note. November 5 Received payment of principal plus interest from Walker for the August 7 note. December 1 Wrote off the Lee account against the Allowance for Doubtful Accounts. Carter Company Calculation of interest revenue February 14 - King 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 $ 0 Requirement No 1 2 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. 3 4 5 6 7 8 9 10 General Journal Date February 14 March 02 March 17 April 16 May 31 August 07 September 03 November 02 November 05 December 01 General Ledger Cash Trial Balance Interest revenue Interest receivable Notes receivable - R. King General Journal Notes receivable - Nguyen Company Accounts receivable - Nguyen Company Notes receivable - E. Lee Accounts receivable - E. Lee Accounts receivable E. Lee Notes receivable - E. Lee Interest revenue Accounts receivable Nguyen Company Notes receivable - Nguyen Company Interest revenue Notes receivable - Walker Accounts receivable Walker Schedule of Calculation of Receivables Interest Notes receivable - R. Griffin Accounts receivable - R. Griffin Cash Notes receivable - R. Griffin Interest revenue Cash Notes receivable - Walker Interest revenue Allowance for doubtful accounts Accounts receivable Walker **** 33 ✓ ✓ › › › ✓ ✓ › › › ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ x Debit 19,520 10,000 ✓ 13,800✔ 13,915 16,000 9,000 Credit 240✔ 80 ✓ 19,200✔ 10,000✔ 13,800 13,800✔ 115✓ 16,000✔ 9,000 ✓ The following selected transactions are from Carter Company. Year 1 December 16 Accepted a $19,200, 60-day, 10% note in granting Robert King a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the King note. Year 2 February 14 Received King's payment of principal and interest on the note dated December 16. March 2 Accepted a $10,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Nguyen Company March 17 Accepted a $13,800, 30-day, 10% note in granting Edward Lee a time extension on her past-due account receivable. April 16 Lee dishonored her note. 31 Nguyen Company dishonored its note. August 7 Accepted a $16,000, 90-day, 12% note in granting a time extension on the past-due account receivable of Walker Company September 3 Accepted a $9,000, 60-day, 10% note in granting Rita Griffin a time extension on his past-due account receivable. November 2 Received payment of principal plus interest from Griffin for the September 3 note. November 5 Received payment of principal plus interest from Walker for the August 7 note. December 1 Wrote off the Lee account against the Allowance for Doubtful Accounts. Carter Company Calculation of interest revenue February 14 - King 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 $ 0 Requirement No 1 2 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. 3 4 5 6 7 8 9 10 General Journal Date February 14 March 02 March 17 April 16 May 31 August 07 September 03 November 02 November 05 December 01 General Ledger Cash Trial Balance Interest revenue Interest receivable Notes receivable - R. King General Journal Notes receivable - Nguyen Company Accounts receivable - Nguyen Company Notes receivable - E. Lee Accounts receivable - E. Lee Accounts receivable E. Lee Notes receivable - E. Lee Interest revenue Accounts receivable Nguyen Company Notes receivable - Nguyen Company Interest revenue Notes receivable - Walker Accounts receivable Walker Schedule of Calculation of Receivables Interest Notes receivable - R. Griffin Accounts receivable - R. Griffin Cash Notes receivable - R. Griffin Interest revenue Cash Notes receivable - Walker Interest revenue Allowance for doubtful accounts Accounts receivable Walker **** 33 ✓ ✓ › › › ✓ ✓ › › › ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ x Debit 19,520 10,000 ✓ 13,800✔ 13,915 16,000 9,000 Credit 240✔ 80 ✓ 19,200✔ 10,000✔ 13,800 13,800✔ 115✓ 16,000✔ 9,000 ✓

Answer rating: 100% (QA)

Year 1 16Dec Dr Cr 31Dec Dr Year 2 Cr 14Feb Dr Cr Cr Cr 2Mar Dr Cr 17Mar Dr Cr 16Apr Dr Cr Cr 31May ... View the full answer