These transactions took place for Pautsch Co. 2006 May 1 Received a $4,000, 1-year, 9% note in

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These transactions took place for Pautsch Co.

2006 May 1 Received a $4,000, 1-year, 9% note in exchange for an outstanding account receivable from S. Bajwa.

Dec. 31 Accrued interest revenue on the S. Bajwa note.

2007 May 1 _ Received principal plus interest on the S. Bajwa note. (No interest has been accrued since December 31, 2006.)

Instructions Record the transactions in the general journal.

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