On March 6, 1999, Mario Corp. sold merchandise to a customer, Koopa Inc. for $100,000, terms 3/15, n/EOM (end of month). Because of non-payment by Koopa Inc., Mario Corp. received a $100,000, 20%, 12-month note on April 1, 1999. The annual reporting period ends October 31 and Mario Corp. uses the periodic inventory system. Koopa Inc. paid the note in full on its maturity date.

Instructions:

Journalize and date the following transactions, assuming Mario Corp. uses the gross method to account for accounts and notes receivable.

i. The sale of merchandise on credit.

ii. The note received in settlement of the account.

iii. The adjusting entry for interest.

iv. Collection of the note and interest.