In Class Practice Example: Notes Receivable Notes receivable are recognized for the amount of cash loaned or goods/services sold. This is the principal amount of the note receivable. Any excess of the amount received over principal is recognized as interest revenue in the period the interest was earned. Information: Dover Electric Company purchased, on account, $50,000 of consulting services from Thomas, Ltd., on November 1, 2021. The amount is due in full on January 1, 2022. Dover Electric is unable to pay the account by the due date and negotiates an extension with a 10% note in lieu of the unpaid account receivable. Required: 1. Prepare the journal entries to record the sale on November 1, 2021, and the modification of payment terms on January 1, 2022. 2. How much interest will be paid if Dover Electric repays the note on (a) July 1, 2022, (b) December 31, 2022, and (c) March 31, 2023. 3. Prepare Thomas's adjusting entry to accrue interest on December 31, 2022, assuming the note is repaid on March 31, 2023. 4. Prepare Thomas's journal entries to record the cash received to pay off the note and interest on each of the three dates specified in part 2