On January 2, Handley Ltd. sold merchandise on account to R. James for $51,000, terms n/30. The company uses a perpetual inventory system and the merchandise originally cost $32,200. On February 1, R. James gave Handley a five-month, 6% note in settlement of this account. On April 30, Handley's year-end, annual adjusting entries were made. On July 1, R. James paid the note and accrued interest. Prepare the journal entries for Handley to record the above transactions.

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