NOTES RECEIVABLE Frenchie, Inc., a truck dealership, sells a truck costing $15,000 to Overvalued Company on January 1, 2009, in exchange for a $30,000 note bearing 12 percent interest.

Required:
. Prepare the journal entry to record the sale on January 1, 2009.
. Determine how much interest Frenchie will receive if the note is repaid on December 31, 2009.
. Prepare Frenchie’s journal entry to record the cash received to pay off the note and interest on December 31, 2009.
Cornerstone Exercise