2500 on an outstanding account, jun 1 he negotiates the signing of a note receivable to settle the account.

Celtic

Company

agrees to the note receivable in

6 months

7%

per year.

Celtic

Company

has a year end

31-jul

a) record the conversion of a the account receivable to a note receivable

b) accrue the interest at year end

c) record the payment of note receivable on maturity