C Craft has been having trouble collecting monies owed from accounts receivable and has decided to apply the interest rates that are shown on the customers’ tax invoices for amounts that are overdue. Accounts owing beyond the normal trading terms are: W Melinda $4500 for two months and K Le $8700 for three months.

Interest is 12% p.a. for the overdue period.

Prepare the appropriate journal to process the above transactions in C Craft’s books.