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tioncomflow/connect html hsRege true&returnUrl;: https%3A%2F%2Fconnectm Homework G Saved Help Save & Exit Check myw Following are selected transactions of Danica Company for 2016 and 2017. 2016 Dec. 13 Accepted a $18,000, 45-day, 1e% 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 $12,000, 10%, 90-day note dated March 3 in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted a $10,000, 30-day, 6% 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. Chen June 1 g account against the Allowance for Doubtful Accounts Received the Tomas payment for principal and interest on the note dated March 3 the table to calculate the interest amounts and use those calculated values to prepare your journal entries (Do not intermediate calculations. Use 360 days a year.) Complete this question by entering your answers in the tabs below M Lee Note Tomas Co General H Chena Note 2 up

Explanation / Answer

Entries in the books of Dancia company for 2016

Dec -13

                                Notes Receivable -Debit                              $18,000

                                                To Accounts Receivable                                $18,000

                (to record of converting of accounts receivable to notes receivable)

Dec -31

                                Interest receivable - Debit           $95

                                                To Interest income - Credit          $95

                (to record of accrued interest for 19 days in December 31st)

M Lee Note Total through maturity Amount accrued on December 31 Interest recognized January 27 Principal $18,000 $0 Rate% 10% 10% 10% Time 45 Days 19 Days 45 Days Total Interest $225 $95 $225

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