These transactions took place for Pautsch Co.

|2006 |

|May 1 |Received a $4,000, 1-year, 9% note in exchange for an outstanding account receivable from S. Bajwa.

|Dec. 31| Accrued interest revenue on the S. Bajwa note. 2007

|May 1 |Received principal plus interest on the S. Bajwa note. (No interest has been accrued since December 31, 2006.)

Record the transactions in the general journal.

Do not copy from Chegg and give complete answer with explanation