Answer and Explanation:
The journal entries are shown below;
1.
Note Receivable-J. Brown $36500
To Accounts Receivable-J. Brown $36,500
(Being Accepted Note Receivable is recorded)
2. Interest Receivable $90 ($36,500 × 3% × 30 ÷ 365)
To Interest Revenue $90
(Being Accrued interest earned is recorded)
3. Cash 36860
To Interest Receivable $90
To Interest Revenue $270 ($36,500 × 3% × 90 ÷ 365)
To Note Receivable-J. Brown $36,500
(Being Collected note receivable plus interest is recorded)
