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Year 1 December 16 Accepted a $12,000,60-day, 10% note in granting Edward...

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Accounting

Year 1
December 16 Accepted a $12,000,60-day, 10% note in granting Edward Lee a time extension on his past-due account receivable.
December 31 Made an adjusting entry to record the accrued interest on the Lee note.
Year 2
February 14 Received Lees 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 Lauer Company
March 17 Accepted a $17,400,30-day, 8% note in granting Jose Garcia a time extension on her past-due account receivable.
April 16 Garcia dishonored her note.
31 Lauer Company dishonored its note.
August 7 Accepted a $14,000,90-day, 8% note in granting a time extension on the past-due account receivable of Stone Company
September 3 Accepted a $16,200,60-day, 10% note in granting Wang 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 Stone for the August 7 note.
December 1 Wrote off the Garcia account against the Allowance for Doubtful Accounts.
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