|December 16||Accepted a(n) $10,000, 60-day, 9% note in granting Danny Todd a time extension on his past-due account receivable.|
|December 31||Made an adjusting entry to record the accrued interest on the Todd note.|
|February 14||Received Todd’s payment of principal and interest on the note dated December 16.|
|March 2||Accepted a(n) $8,000, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Company.|
|March 17||Accepted a $2,600, 30-day, 7% note in granting Ava Privet a time extension on her past-due account receivable.|
|April 16||Privet dishonored her note.|
|May 31||Midnight Company dishonored its note.|
|August 7||Accepted a(n) $7,650, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Company.|
|September 3||Accepted a $2,700, 60-day, 11% note in granting Noah Carson a time extension on his past-due account receivable.|
|November 2||Received payment of principal plus interest from Carson for the September 3 note.|
|November 5||Received payment of principal plus interest from Mulan for the August 7 note.|
|December 1||Wrote off the Privet account against the Allowance for Doubtful Accounts.|
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 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 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?