On September 1, 2009, Health Wise International acquired a 12 percent, nine-month note receivable from Herbal Innovations, a credit customer, in settlement of a $22,000 account receivable.
Prepare journal entries to record the following:
a. The receipt of the note on September 1, 2009, in settlement of the account receivable.
b. The adjustment to record accrued interest revenue on December 31, 2009.
c. The collection of the principal and interest on May 31, 2010.