On November 1, Coleman Company received Davis Company's $9,600, 90-day, 6% note receivable in settlement of a past due account.

At the end of the fiscal year, on December 31, Coleman Company accrued interest on the note.

Required:

Prepare the journal entries for Coleman Company on November 1 and December 31.

Note: To simplify the arithmetic in the problem, use 360 days for the number of days in a year.