Exercise - Elburn Supply Co. has the following transactions related to notes receivable during the last 2 months of 2017. The company does not make entries to accrue interest except at December 31.
Nov. 1 - Loaned $12,600 cash to Manny Lopez on a 12-month, 10% note.
Dec. 11 - Sold goods to Ralph Kremer, Inc., receiving a $24,750, 90-day, 8% note.
Dec. 16 - Received a $22,800, 180 day, 10% note in exchange for Joe Fernetti's outstanding accounts receivable.
Dec. 31 - Accrued interest revenue on all notes receivable.
Required -
Journalize the transactions for Elburn Supply Co.
Record the collection of the Lopez note at its maturity in 2018.