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The following are transactions related to notes receivable. In all cases, interest is due at maturity unless indicated otherwise.
Jan 1 Loaned $40,000 to the company's general manager, who signed a 6-month, 7% note due June 30.Feb 1 A customer who owed $6,500 settled his account by signing a 3-month, 3% note.Mar 31 Recorded accrued interest on all notes in preparation for issue of quarterly financial .... statements.Apr 30 The customer referred to above defaulted on the note. It is unlikely that he will be able to pay the account.Jun 30 The general manager paid her note in full.
Instructions
Problem 1: Record all of the transactions described.
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