Reference no: EM132380305

Year 1

Dec. 16 Accepted a $14,300, 60-day, 9% note in granting Danny Todd a time extension on his past-due account receivable. 31 Made an adjusting entry to record the accrued interest on the Todd note.

Year 2

Feb. 14 Received Todd's payment of principal and interest on the note dated December 16.

Mar. 2 Accepted a(n) $6,900, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co.

17 Accepted a(n) $2,400, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable.

Apr. 16 Privet dishonored her note.

May 31 Midnight Co. dishonored its note.

Aug. 7 Accepted a(n) $8,450, 90-day, 11% note in granting a time extension on the past-due account receivable of Mulan Co.

Sep. 3 Accepted a(n) $2,280, 60-day, 9% note in granting Noah Carson a time extension on his past-due account receivable.

Nov. 2 Received payment of principal plus interest from Carson for the September 3 note.

Nov. 5 Received payment of principal plus interest from Mulan for the August 7 note.

Dec. 1 Wrote off the Privet account against the Allowance for Doubtful Accounts.

Required:

1-a First, complete the table below to calculate the interest amount at December 31, Year 1.

1-b Use the calculated value to prepare your Journal entries for Year 1 transactions.

1-c First, complete the table below to calculate the interest amounts.

1-d Use those calculated values to prepare your Journal entries for Year 2 transactions.

2. If Ohlm pledged its receivables as security for a loan from the bank, where on the financial statements does it disclose this pledge of receivables?