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Accustart Inc. had the following transactions during 2018. Accustart Inc. has a calendar year-end and does not maintain a separate Allowance for Doubtful Notes Receivable

Accustart Inc. had the following transactions during 2018. Accustart Inc. has a calendar year-end and does not maintain a separate Allowance for Doubtful Notes Receivable account.

Jan. 1 An employee signed a 6-month, 4% note due June 30 for a $20,300 company loan.

Feb. 1 One of Accustarts customers, Sarson Inc. who owed $7,200 settled their account by signing a three month, 4% note.

Mar. 31 Recorded accrued interest on all notes in preparation for issuance of quarterly financial statements.

Apr. 30 Sarson Inc. defaulted on its note. It is unlikely that Sarson will be able to pay the account.

June 30 The employee paid her note in full along with all outstanding interest.

Prepare the appropriate journal entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) image text in transcribed

Date Account Titles and Explanation Debit Credit Jan. 1 Feb. 1 Mar. 31 Apr. 30 June. 30

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