The following selected transactions are from Garcia Company. Year 1 Dec. 16 Accepted a $20,400, 60-day, 12% note in granting Rita Griffin a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Griffin note. Year 2 Feb. 14 Received Griffin's payment of principal and interest on the note dated December 16. 2 Accepted a $9,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Wright Co. 17 Accepted a $7, 200, 30-day, 10% note in granting Wang Lee a time extension on her past-due account receivable. Apr. 16 Lee dishonored her note. May 31 Wright Co. dishonored its note. Aug. 7 Accepted a $22,000, 90-day, 10% note in granting a time extension on the past-due accourt receivable of Collins Co. Sep. 3 Accepted a $11,400, 60-day, 10% note in granting Maria Gonzalez a time extension on his past-due account receivable. Mar. 2 Received payment of principal plus interest from Gonzalez for the September 3 note. Nov. 5 Received payment of principal plus interest from Collins for the August 7 note. 1 Wrote off the Lee account against the Allowance for Doubtful Accounts. Nov. Dec.
The following selected transactions are from Garcia Company. Year 1 Dec. 16 Accepted a $20,400, 60-day, 12% note in granting Rita Griffin a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Griffin note. Year 2 Feb. 14 Received Griffin's payment of principal and interest on the note dated December 16. 2 Accepted a $9,000, 6%, 90-day note in granting a time extension on the past-due account receivable from Wright Co. 17 Accepted a $7, 200, 30-day, 10% note in granting Wang Lee a time extension on her past-due account receivable. Apr. 16 Lee dishonored her note. May 31 Wright Co. dishonored its note. Aug. 7 Accepted a $22,000, 90-day, 10% note in granting a time extension on the past-due accourt receivable of Collins Co. Sep. 3 Accepted a $11,400, 60-day, 10% note in granting Maria Gonzalez a time extension on his past-due account receivable. Mar. 2 Received payment of principal plus interest from Gonzalez for the September 3 note. Nov. 5 Received payment of principal plus interest from Collins for the August 7 note. 1 Wrote off the Lee account against the Allowance for Doubtful Accounts. Nov. Dec.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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