When a note matures in a later fiscal period, the payee of the note receivable has to do some end-of-period accruals to recognize that interest has been earned, even though it has not yet been received. A customer of Locke Industries, Shepherd Inc., arranged to have its customer account receivable (valued at $12,000) converted to a 90-day, 12% note receivable. The note was created on December 1, 2014 and matures on March 1, 2015. On the last day of its accounting year (December 31), Locke must report the interest earned on the note, even though it will not be received until March 1st. In the following journal, the conversion of the account receivable to a note receivable has been recorded for you. Record the adjusting entry on December 31, 2014 (assume a 360-day year and 30 days worth of accrual on the note as of December 31) and the March 1, 2015 entry when the note receivable matures and is paid by the customer. Use Smart Entry when selection lists are not available