Yarnell Electronics sells computer systems to small businesses. Yarnell engaged in the following activities involving notes receivable:
a. On November 1, 2011, Yarnell sold a $5,000 system to Ross Company. Ross gave Yarnell a six-month, 9 percent note as payment.
b. On December 1, 2011, Yarnell sold an $8,000 system to Searfoss Inc. Searfoss gave Yarnell a nine-month, 8 percent note as payment.
c. On May 1, 2012, Ross paid the amount due on its note.
d. On September 1, 2012, Searfoss paid the amount due on its note.
Required:
Prepare the necessary journal and adjusting entries for Yarnell Electronics to record these transactions.