Note receivable--journal entries
On September 1, 2015, Essex Transfer Corp sold equipment priced at $350,000 in exchange for a six-month note receivable with an annual interest rate of 12%, all due at maturity.
(a) Prepare the December 31, 2015 (fiscal year-end), adjusting entry made by Essex with regard to this note receivable.
(b) Prepare the entry made by Essex on March 1, 2016 (maturity date of note), to record collection of note and interest.
(c) Assume that on March 1, 2016, the maker of the note defaults and Essex does not collect the note. Prepare the entry to be made to Essex on March 1, 2016, in this situation.