Question: On November 1, 2009, Davidson Co. received a $5,000, 10%, 4-month note from Chris Spent in exchange for his open account receivable. Davidsons scal year

On November 1, 2009, Davidson Co. received a $5,000, 10%, 4-month note from Chris Spent in exchange for his open account receivable. Davidson’s ﬁscal year ends on December 31.
Required:
(a) Prepare the entry to record the receipt of this note receivable for Davidson.
(b) Prepare the necessary year-end adjusting entry related to this note receivable. Why is this entry needed?
(c) Assume that Davidson repaid the note and interest on the due date. Prepare and date the entry needed to record the funds received by Davidson.

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