Vandiver Company had the following select transactions. Apr. 1, 2014 Accepted Goodwin Company's 12-month, 12% note in settlement of a $95,000 account receivable. July 1, 2014 Loaned $97,000 cash to Thomas Slocombe on a 9-month, 10% note. Dec. 31, 2014 Accrued interest on all notes receivable. Apr. 1, 2015 Received principal plus interest on the Goodwin note. Apr. 1, 2015 Thomas Slocombe dishonored its note; Vandiver expects it will eventually collect. List of Accounts Exercise 8-12 Prepare journal entries to record the transactions. Vandiver prepares adjusting entries once a year on December 31. Account Titles and Explanation Debit Credit Date 4/1/2015 Accounts Payable Accounts Receivable Allowance for Doubtful Accounts Bad Debts Expense Buildings Cash 7/1/2015 12/31/2015 Cost of Goods Sold Income Summary Interest Receivable Interest Revenue Inventory Land Maintenance and Repairs Expense Notes Payable Notes Receivable Other Operating Expenses Prepaid Insurance Sales Discounts Sales Returns and Allowances Sales Revenue Service Charge Expense Supplies Supplies Expense (To record interest at 12%) (To record interest at 10%) 4/1/2016 (To record collection and interest) (To record the dishonour)