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allowanee memou m 9-5A and ng notes transactions P3 The following selected transactions are from Ohlm Company. 2014 Accepted a $10,800, 60-day, 8% note dated this day in granting Danny Todd a time exte on his past-due account receivable Dec. 16 0 31 Made an adjusting entry to record the accrued interest on the Todd note. 2015 Feb. 14 Received Todd's payment of principal and interest on the note dated December 16 Mar. 2 Accepted a $0.100, 8%, 90-day note dated this day in granting a time extension on the . 14, Cr nue $108 account receivable from Midnight Co. Accepted a $2,400, 30-day, 7% note dated this day in granting Ava Privet a time extension 17 her past-due account receivable. Privet dishonored her note when presented for payment. Midnight Co. refuses to pay the note that was due to Ohlm Co. on May 31. Prepare journal entry to charge the dishonored note plus accrued interest to Midnight Co.'s accou Apr. 16 May 31 31, Cr, Interest nts receivable. dishonored note plus interest July 16 Received payment from Midnight Co. for the maturity value of its Aug. 7 Accepted a $7,450, 90- Sept. 3 Accepted a S2 100 60-day 10% note dated this day in granting Noah Carson a time extension for 46 days beyond maturity at 8%. day, 10% note dated this day in granting a time extension on the past-due account receivable of Mulan Co. 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 Allowance for Doubtful Accounts Required 1. Prepare journal entries to record these transactions and events. (Round amounts to the nearest dollar Analysis Component 2. What reporting is necessary when a business pledges receivables as security for a loan and the loan still outstanding at the end of the period? Explain the reason for this requirement and the accounti principle being satisfied

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