On August 31, 2011, a company accepted a note receivable from a customer whose $6,000 account was overdue. The note is due in eight months and has an interest rate of 8%.
Required:
a. How much interest will be earned on this note in total?
b. What journal entry should the company make to record the receipt of the note?
c. What adjusting entry should the company make regarding this note for its December 31, 2011, year end?
d. What journal entry should the company make when the note is collected on April 30,2012?