Response to the following :
Refer to the information in Exercise and prepare the journal entries for the following selected transactions of Deshawn Company for 2011.
2011 Jan. 27 Received Clark's payment for principal and interest on the note dated December 13.
Mar. 3 Accepted a $4,000, 10%, 90-day note dated March 3 in granting a time extension on the pastdue account receivable of Shandi Company.
17 Accepted a $2,000, 30-day, 9% 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.
Exercise:
Prepare journal entries to record the following selected transactions of Paloma Company.
Mar. 21 Accepted a $3,100, 180-day, 10% note dated March 21 from Salma Hernandez in granting a time extension on her past-due account receivable.
Sept. 17 Hernandez dishonors her note when it is presented for payment.
Dec. 31 After exhausting all legal means of collection, Paloma Company writes off Hernandez's account against the Allowance for Doubtful Accounts.