Bieber Company had the following select transactions.
May 1, 2014 Accepted Crane Company's 1-year, 12% note in settlement of a $16,000 account receivable.
July 1, 2014 Loaned $25,000 cash to Sam Howard on a 9-month, 10% note.
Dec. 31, 2014 Accrued interest on all notes receivable.
Apr. 1, 2015 Sam Howard dishonored its note; Bieber expects it will eventually collect.
May 1, 2015 Received principal plus interest on the Crane note.

Instructions
Prepare journal entries to record the transactions. Bieber prepares adjusting entries once a year on December 31.