ABC has the following transactions during 2020: 1

Subject:AccountingPrice: Bought3

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ABC has the following transactions during 2020:
1. On March 1, 2020, ABC sold merchandise on account to Customer 1 for €7,750. ABC
offers a cash discount of 2% if payment is made within 20 days of the sale. Otherwise
the full amount, net of returns and allowances, is due in 30 days.
2. On March 10, 2020, Customer 1 returned merchandise worth €1,550 to ABC.
1. 3. On March 15, 2020, Customer 1 paid for the merchandise.
3. On April 1, 2020, ABC loaned €10,000 to XZ with a 1-year, 10% note.
4. On November 1, 2020, received a €4,000, 6-month, 5% note in exchange for Customer's
2 outstanding accounts receivable.
5. On December 16, 2020, sold merchandise to Customer 3, receiving a €4,500, 3-months,
8% note.
6. On December 31, 2020, the interest revenue accrued is recognized on all notes
receivable.

a. Record the collection of note receivable as their mature in 2021.