P 712

A $120,000 account receivable owing from Baron Cabinets Ltd. to Glimmer Enterprises was converted into a 12%, 12month note receivable on August 1, 2019. Principal of $10,000 per month plus accrued interest on the outstanding balance has been paid on the last day of each month.

Required:

Prepare the entry needed to record the note receivable in Glimmers accounting records on August 1.

Prepare the entry needed to record accrued interest on the note receivable in Glimmers accounting records at December 31, 2019.

Record the cash received from the note in Glimmers accounting records on February 28, 2020.