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.

Loaned $25,000 cash to Sam Howard on a 9-month, 10% note.

Accrued interest on all notes receivable.

Sam Howard dishonored its note; Bieber expects it will eventually collect.

Received principal plus interest on the Crane note.

July 1, 2014 Dec. 31, 2014 Apee el, 2015 May 1, 2015 Instructions Prepare journal entries to record the transactions. Bieber prepares adjusting entries once a year on December 31.