Following are selected transactions for Eduardo Company.
Nov. 1 Accepted a $5,000, 180-day, 6% note dated
November 1 from Melosa Allen in granting a time extension on her
past-due account receivable.
Dec. 31 Adjusted the year-end accounts for the accrued interest earned on the Allen note.
Apr. 30 Allen honors her note when presented for payment; February has 28 days for the current year.
Required:
Prepare journal entries to record the above transactions. (Use a
360-day year for interest calculation. Do not round intermediate
calculations and round your final answers to nearest dollar amount.
