Reference no: EM131867053
Exercise - Notes receivable transactions
Following are selected transactions Deshawn Company for 2010 and 2011.
2010
Dec. 13 Accepted a $25,000, 45-day, 8% note dated December 13 in granting Latisha Clark a time extension on her past-due account receivable.
Dec. 31 Prepared an adjusting entry to record the accrued interest on the Clark note.
2011
Jan. 27 Received Clark's payment for principal and interest on the note dated December 13.
Mar. 3 Accepted a $19,000, 9%, 90-day note dated March 3 in granting a time extension on the pastdue account receivable of Shandi Company.
Mar. 17 Accepted a $17,000, 30-day, 8% note dated March 17 in granting Juan Torres a time extension on his past-due account receivable.
Apr. 16 Torres dishonors his note when presented for payment.
May 1 Wrote off the Torres account against the Allowance for Doubtful Accounts.
June 1 Received the Shandi payment for principal and interest on the note dated March 3.
Prepare journal entries for the above transactions for 2011.