NOTES RECEIVABLE
Frenchie, Inc., a truck dealership, sells a truck costing $15,000 to Overvalued Company on January 1, 2009, in exchange for a $30,000 note bearing 12 percent interest.
1. Prepare the journal entry to record the sale on January 1, 2009.
2. Determine how much interest Frenchie will receive if the note is repaid on December 31, 2009.
3. Prepare Frenchie's journal entry to record the cash received to pay off the note and interest on December 31, 2009.