On November 16, Price Company received Patterson Company's $6,600, 120-day, 15%note receivablein settlement of a past due account.

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

Required:

Prepare the journal entries for Price Company on November 16 and December 31.

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