On May 1, Vaugn Inc. accepts a $1,000, 9-month, 12% promissory note in settlement of an account receivable with a customer. The interest payment is due when the note matures.

a. Record the journal entry that Zack Company will record on May 1.

b. Record the journal entry that Zack Company will record on December 31

c. Record the journal entry Zack Company will record on February 1

Use the following format:

Debit: Account Name $xxxxx

Credit: Account Name $xxxx