owes 6% per year. CR 1 Debtor Itd Vs Violins $20,000 on an outstanding account 2 1-Jun They negotiate the signing of a note receivable to settle the account 3 Vs Violins agrees to accept the note receivable in 9 months with interest of 4 Vs Violins has a year end on 31-Aug 5 6 a) record the conversion of a the account receivable to a note receivable 7 b) accrue the interest at year end 8 C) record the payment of note receivable on maturity 9 10 date description DR CR 11 12 13 14 date description DR 15 16 17 18 date description DR CR 19 20 21 22 23 24 25 26 27 28 YES Itd owes Hope Enterprise $4,700 on an outstanding account 29 1-May he negotiates the signing of a note receivable to settle the account. Enterprise agrees to the note receivable in 8 months 31 Hope Enterprise has a year end 31-Jul 32 33 a) record the conversion of a the account receivable to a note receivable 34 b) accrue the interest at year end 35 C) record the payment of note receivable on maturity 36 37 date description DR CR 38 39 40 41 date description DR CR 42 43 44 45 date description DR CR 46 47 48 49 50 51 30 Hope 7% per year