On Sept 1, 2010, Dental Equipment Corp sold equipment priced at $350,000 in exchange for a six month note receivable with an annual interest rate of 16%, all due at maturity.
a) Prepare the Dec 31, 2010 (fiscal year end), adjusting entry made by Dental with regard to this note receivable.
b) Prepare the entry made by Dental at maturity of note to record collection of note and interest.
c) Assume that the maker of the note defaults and Dental does not collect the note. Prepare the entry to be made.