Your customer has an overdue A/R which you have decided will be replaced with a $50,000 (face value) non- interest-bearing note receivable, on June 1, 2021. An interest rate of 6% is appropriate for this note, and the note is due in one year. Round all amounts to the nearest dollar.

A. Prepare the journal entry for the N/R issuance on June 1, 2021.

B. Prepare the adjusting journal entry on December 31, 2021, your companys year-end.

C. Prepare the journal entries on the maturity date of the N/R.