Response to the following problem:
Grove Refrigeration Ltd. sold $10,000 of goods to Redlac Pump Services Inc. on January 28, 2016. The account receivable was converted to a note receivable on August 1, 2016. Redlac agreed to pay Grove $1,000 per month plus accrued interest on the outstanding balance on the last day of each month.
Required:
1. Prepare the entry needed to record the note receivable in Grove's accounting records on August 1, 2016.
2. Record the cash received from the note in Grove's accounting records on August 31, 2016.