On January 1, 2018, ABC received a promissory note from a customer as consideration in an inventory sale transaction. ABC recorded the sale, but it has not yet recorded the interest earned on the note during 2018. The note is noninterest-bearing, and it calls for the customer to pay the $31,825 face value on the December 31, 2019 maturity date. The relevant market rate of interest on the issue date was 7%.

Instructions:

Prepare the journal entries to record the omitted adjustment