On January 15, 2015, Craig Company received a two-month, 9%, $9,000 note from William Pentel for the settlement of his open account. The entry by Craig Company on January 15, 2015 would include a:

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The entry by Craig Company on January 15, 2015 would include a debit of $9,000 to Notes Receivable, as the company is receiving a note from William Pentel. The interest of $135 ($9,000 x 9% x 2/12) will be recorded as interest revenue over the two-month period. Since Accounts Receivable is being settled with the note, there would be no credit to Accounts Receivable in this transaction.

On January 15, 2015, Craig Company Received a Two-Month, 9