Problem:
Prepare journal entries to record the following transactions entered into by Harper Company:
2003
June 1 Received a $15,000, 12%, 1-year note from Sue Eddy as full payment on her account.
Nov. 1 Sold merchandise on account to Stone, Inc. for $20,000, terms 2/10, n/30.
Nov. 5 Stone, Inc. returned merchandise worth $2,000.
Nov. 9 Received payment in full from Stone, Inc.
Dec. 31 Accrued interest on Eddy's note.
2004
June 1 Sue Eddy honored her promissory note by sending the face amount plus interest. No interest has been accrued in 2004.