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The following transactions are from Ohlm Company. (Use 360 days a year.) Year 1
| Dec. | | 16 | | Accepted a(n) $10,900, 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 Todds payment of principal and interest on the note dated December 16. |
| Mar. | | 2 | | Accepted a(n) $7,900, 9%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. |
| | | 17 | | Accepted a $3,900, 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) $8,200, 90-day, 10% note in granting a time extension on the past-due account receivable of Mulan Co. |
| Sep. | | 3 | | Accepted a $2,650, 60-day, 10% 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. |
Complete the table below to calculate the interest amount at December 31, Year 1.
| |
| | | | Total Through Maturity | Interest Recognized December 31 | | Principal | | | | Rate (%) | | | | Time | | | | Total interest | | | |
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