Question

2016 dec. 13 accepted a $9,500, 45-day, 8% note dated december 13 in granting miranda lee a time extension on her past-due account receivable. 31 prepared an adjusting entry to record the accrued interest on the lee note. 2017 jan. 27 received lee's payment for principal and interest on the note dated december 13. mar. 3 accepted a $5,000, 10%, 90-day note dated march 3 in granting a time extension on the past-due account receivable of tomas company. 17 accepted a $2,000, 30-day, 9% note dated march 17 in granting h. cheng a time extension on his past-due account receivable. apr. 16 h. cheng dishonored his note when presented for payment. may 1 wrote off the h. cheng account against the allowance for doubtful accounts. june 1 received the tomas payment for principal and interest on the note dated march 3.

Answer 1

The following are the journal entries:

 

Jan 27, 2017

Dr

Cash 9,559

Cr

Interest Revenue 21

Interest Receivable 38

Notes Receivable – M. Lee 9500

 

Mar 3, 2017

Dr

Notes Receivable 5000

Cr

Accounts Receivable – Tomas Co 5000

 

Mar 17, 2017

Dr

Notes receivable – H. Cheng 2000

Cr

Accounts Receivable – H. Cheng 2000

 

Apr. 16, 2017

Dr

Accounts Receivable – H. cheng 2045

Cr

Interest Revenue 45

Notes Receivable 2000

 

May 1, 2015

Dr

Allowance for Doubtful Accounts 2045

Cr

Accounts Receivable – H. Cheng 2045

 

Jun 1, 2017

Dr

Cash 5125

Cr

Interest Revenue 125

Notes Receivable – Tomas Co 5000