On January 2, Kuril Ltd. sold merchandise on account to R. James for $48,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $32,000. On February 1, R. James gave Kuril a five-month, 7% note in settlement of this account. On April 30, Kuril's year-end, annual adjusting entries were made. On July 1, R. James paid the note and accrued interest. Prepare the journal entries for Kuril to record the above transactions.