The following selected transactions are from lee company. year 1 dec. 16 accepted a $12,000, 60-day, 10% note in granting edward lee a time extension on his past-due account receivable. 31 made an adjusting entry to record the accrued interest on the lee note. year 2 feb. 14 received lee’s payment of principal and interest on the note dated december 16. mar. 2 accepted a $11,000, 10%, 90-day note in granting a time extension on the past-due account receivable from lauer co. 17 accepted a $17,400, 30-day, 8% note in granting jose garcia a time extension on her past-due account receivable. apr. 16 garcia dishonored her note. may 31 lauer co. dishonored its note. aug. 7 accepted a $14,000, 90-day, 8% note in granting a time extension on the past-due account receivable of stone co. sep. 3 accepted a $16,200, 60-day, 10% note in granting wang lee a time extension on his past-due account receivable. nov. 2 received payment of principal plus interest from lee for the september 3 note. nov. 5 received payment of principal plus interest from stone for the august 7 note. dec.1 wrote off the garcia account against the allowance for doubtful accounts.