I\'m not sure what goes in May 31? The following selected transactions are from
ID: 2576820 • Letter: I
Question
I'm not sure what goes in May 31?
The following selected transactions are from Lee Company. 14 2016 Dec. 16 Accepted a $21,600, 60-day, 8% note dated this day in granting June Taylor a time extension on his past-due account receivable 31 Made an adjusting entry to record the accrued interest on the Taylor note Skipped 2017 Feb. 14 Received Taylor's payment of principal and interest on the note dated December 16 Mar. 2 Accepted a $7,000, 8%, 90-day note dated this day in granting a time extension on the past-due account receivable from Brown 17 Accepted a $15,000, 30-day, 8% note dated this day in granting Maria Gonzalez a time extension on her past-due account receivable Apr. 16 Gonzalez dishonored her note when presented for payment May 31 Brown Co. refused to pay the note that was due to Lee Co. on May 31. Prepare the journal entry to charge the dishonored July 16 Received payment from Brown Co. for the maturity value of its dishonored note plus interest for 46 days beyond maturity at Aug. 7 Accepted a $20,000, 90-day, 8% note dated this day in granting a time extension on the past-due account receivable of Sep. 3 Accepted a $11,400, 60-day, 10% note dated this day in granting Carlos Sanchez a time extension on his past-due account note plus accrued interest to Brown Co. 's accounts receivable 8% Garcia Co receivable Nov. 2 Received payment of principal plus interest from Sanchez for the September 3 note Nov. 5 Received payment of principal plus interest from Garcia for the August 7 note Dec. Wrote off the Gonzalez account against the Allowance for Doubtful Accounts General Journal GeneralTrial Balance Receivables Ledger Schedule of Calculation of Requirement Interest Enter the principal amount, interest rate, and number of days of interest to be recorded for each note. Verify that total interest revenue agrees with the trial balance Dates: Jan 01 to Dec 31 Lee Co. Calculation of interest revenue February 14-Taylor note: Principal 21,600Explanation / Answer
31-May Receivable Balance 7140 (7000+140) Interest rate 8% No. of days interest to be recorded 46 Principle*arte *days/360 73 7-Aug Principle 20000 Interest rate 8% No. of days interest to be recorded 90 Principle*arte *days/360 204 3-Sep Principle 11400 Interest rate 10% No. of days interest to be recorded 60 Principle*arte *days/360 146