On December 1, Anderson Company received Walker Company's $8,400, 120-day, 8%note receivablein settlement of a past due account.

At the end of the fiscal year, on December 31, Anderson Company accrued interest on the note.

Required:

Prepare the journal entries for Anderson Company on December 1 and December 31.

Note: To simplify the arithmetic in the problem, use 360 days for the number of days in a year.