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12 November, 13:27

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.

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  1. 12 November, 14:14
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    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
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