Sage HillCompany had the following select transactions.

Apr.1, 2022 Accepted Goodwin Company's 12-month,6% note in settlement of a $45,000account receivable. July1, 2022Loaned $17,000cash to Thomas Slocombe on a 9-month,12% note.Dec.31, 2022Accrued interest on all notes receivable.Apr.1, 2023Received principal plus interest on the Goodwin note.Apr.1, 2023Thomas Slocombe dishonored its note;Sage Hillexpects it will eventually collect.

Prepare journal entries to record the transactions.Sage Hillprepares adjusting entries once a year on December 31.