Year 1

Dec.		16			Accepted a $16,800, 60-day, 12% note in granting Carolyn Collins a time extension on his past-due account receivable.
		31			Made an adjusting entry to record the accrued interest on the Collins note.

Year 2

Feb.		14			Received Collinss payment of principal and interest on the note dated December 16.
Mar.		2			Accepted a $8,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Perry Co.
		17			Accepted a $12,600, 30-day, 8% note in granting Jim Ohlm a time extension on her past-due account receivable.
Apr.		16			Ohlm dishonored her note.
May		31			Perry Co. dishonored its note.
Aug.		7			Accepted a $12,000, 90-day, 8% note in granting a time extension on the past-due account receivable of Gonzalez Co.
Sep.		3			Accepted a $6,600, 60-day, 10% note in granting Greg Taylor a time extension on his past-due account receivable.
Nov.		2			Received payment of principal plus interest from Taylor for the September 3 note.
Nov.		5			Received payment of principal plus interest from Gonzalez for the August 7 note.
Dec.		1			Wrote off the Ohlm account against the Allowance for Doubtful Accounts.

General Journal tab - Prepare the Year 2 journal entries related to the notes and accounts receivable of Sanchez 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.

Journal entry worksheet Feb. 14 Received Collins's payment of principal and interest on the $16,800, 60-day, 12% note dated December 16. The Sanchez 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 Journal entry worksheet Mar. 2 Accepted an $8,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Perry Co. Note: Enter debits before credits. General Journal Debit Credit Date Mar 02 Record entry Clear entry View general journal Journal entry worksheet Apr. 16 Ohlm dishonored her note. Note: Enter debits before credits. General Journal Debit Credit Date Apr 16 Record entry Clear entry View general journal Journal entry worksheet May 31 Perry Co. dishonored its note. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Record entry Clear entry View general journal Journal entry worksheet Aug. 7 Accepted a(n) $12,000, 90-day, 8% note in granting a time extension on the past-due account receivable of Gonzalez Co. Note: Enter debits before credits. General Journal Debit Credit Date Aug 07 ( Record entry Clear entry View general journal Journal entry worksheet Sept. 3 Accepted a $6,600, 60-day, 10% note in granting Greg Taylor a time extension on his past-due account receivable. Note: Enter debits before credits. General Journal Debit Credit Date Sep 03 Record entry Clear entry View general journal Journal entry worksheet Nov. 2 Received payment of principal plus interest from Taylor for the September 3 note. Note: Enter debits before credits. Date General Journal Debit Credit Nov 02 Record entry Clear entry View general journal Journal entry worksheet Nov. 5 Received payment of principal plus interest from Gonzalez for the August 7 note. Note: Enter debits before credits. Date General Journal Debit Credit Nov 05 Record entry Clear entry View general journal Journal entry worksheet