On Oct 15, 2020, Sunshine Enterprise sold $10,000 of merchandise to XYZ Company who a give a 50-days, 9% note for $10,000 for the purchase.

On November 12, 2020, Sunshine Enterprise sold $40,000 of merchandise to ABC with a term of 2/10, n30. On December 3, 2020, Sunshine received payment from XYZ on the note.

On December 12, 2020 Sunshine received a 60-day, 6% note for $40,000, dated December 12, 2020 from ABC as a payment of its accounts receivable with approval from Sunshine management.

Sunshine accounting year ends December 31 each year and uses the perpetual inventory system. (Take 360 days for the calculation of interest)

Required:

1. Prepare journal entry to record the October 15 transaction.
2. Prepare journal entry to record the November 12 transaction.
3. Prepare journal entry to record the December 3 transaction.
4. Prepare journal entry to record the December 12 transaction.
5. Prepare journal entry to record the accrued interest revenue on December 31. (Round to the nearest dollar).
6. Determine the maturity date of the 60-day note by ABC Company.
7. Prepare journal entry to record the payment of the on note by ABC upon maturity.