On May 1, 2022, Tabor Company received an $7,600 note from a customer in settlement of an $7,600 account receivable from that customer. The note bore interest at the rate of 16% per annum, and the note plus interest was payable April 30, 2023.

Required:

Use the horizontal model to show the effects (+ for addition and for subtraction) of each of these transactions and adjustments:

1. Receipt of the note on May 1, 2022.
2. The accrual of interest at December 31, 2022.
3. The collection of the note and interest on April 30, 2023.