Year 1 December 16 Accepted a $22,800, 60-day, 10% note in granting Carlos Sanchez a time extension on his past-due account receivable. December 31 Made an adjusting entry to record the accrued interest on the Sanchez note. Year 2 February 14 Received Sanchez's payment of principal and interest on the note dated December 16. March 2 Accepted a $11,000, 10%, 90-day note in granting a time extension on the past-due account receivable from Mitchell Company March 17 Accepted a $8,400, 30-day 7% note in granting Paula Parker a time extension on her past-due account receivable. April 16 Parker dishonored her note. 31 Mitchell Company dishonored its note. August 7 Accepted a $12,000, 90-day, 6% note in granting a time extension on the past-due account receivable of King Company September 3 Accepted a $13,800, 60-day, 10% note in granting Sarah Walker a time extension on his past-due account receivable. November 2 Received payment of principal plus interest from Walker for the September 3 note. November 5 Received payment of principal plus interest from King for the August 7 note. December 1 Wrote off the Parker account against the Allowance for Doubtful Accounts.

Deceeber 16 Accepted a $22,800,60day,10x note in granting Carlos Sanchez a time extension on his past-due account recelvable. Decenber 31 Made an adjusting entry to record the accrued interest on the sancher note. Yeor 2 February 14 Received Sunchez's payment of principal and Interest on the note dated Decenber 16 . March 2 Accepted a $11,009,10x,90-day note In granting a time extension on the past-due account receivable froe Hitche11 Company March 17 Accepted a 58,400 , Je-day 75 note in aranting Paula Parker a time pxtension on her past-due account receivable. April 16 Parker dishonored her note. 31 Mitchell Conpany dishonored its note. August 7 Accepted a $12,6ee, 90-day, 6x note in granting a tine extension on the past-due account recelvable of King Company September 3 Accepted a $13,800, 60-day, 10 , note in granting Sarah wolker a time extension on his past-due account receivable. Novecher ? Received paysent of principal plus interest from Walker for the September 3 note. Hovenber 5 Received payment of principal plus interest fron King for the August 7 note. Decesber 1 Wrote off the Parker account against the Allousce for Doubtful Accounts