On May 1, 2015, a company lends $150,000 to one of its main suppliers and accepts a 12-month, 7% note.

Record the acceptance of the note on May 1, 2015, the adjustment on December 31, 2015, and the cash collection on May 1, 2016.

Journal Entry Worksheet

• Record the acceptance of the note receivable.
• Record the closing entry for interest revenue.
• Record the reversal of closing entry and collection of cash for notes receivable and interest.