Year 1

December 16	Accepted a $18,000, 60-day, 8% note in granting Greg Taylor a time extension on his past-due account receivable.
December 31	Made an adjusting entry to record the accrued interest on the Taylor note.

Year 2

February 14	Received Taylors payment of principal and interest on the note dated December 16.
March 2	Accepted a $7,000, 8%, 90-day note in granting a time extension on the past-due account receivable from Allen Company
March 17	Accepted a $6,000, 30-day, 7% note in granting Isaac Carter a time extension on her past-due account receivable.
April 16	Carter dishonored her note.
31	Allen Company dishonored its note.
August 7	Accepted a $18,000, 90-day, 6% note in granting a time extension on the past-due account receivable of Turner Company
September 3	Accepted a $9,000, 60-day, 10% note in granting Edward Lee a time extension on his past-due account receivable.
November 2	Received payment of principal plus interest from Lee for the September 3 note.
November 5	Received payment of principal plus interest from Turner for the August 7 note.
December 1	Wrote off the Carter account against the Allowance for Doubtful Accounts.

Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that total interest revenue agrees with the trial balance.

Dates:

January 01

to:

January 31

Walker Company
Calculation of interest revenue
February 14 - Taylor 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