Question

During 2016, Alden Corp. had the transactions below, prepare journal entries for each transaction and the adjusting journal entry necessary at December 31, 2016. Jan. 5 Sold $10,000 of merchandise on account to Flynn Co., terms n/15. Jan. 20 Accepted Flynn Company's $10,000, 3-month, 6% note for the amount due (in lieu of A/R). Feb. 18 Sold $4,000 of merchandise to Mink Company and accepted Mink's $4,000, 6-month, 8% note for the amount due from the sale. Apr. 20 Collected Flynn Company note in full (principal and interest). Aug. 1 Accepted Creech Inc.'s $9,000, 6-month, 5% note is settlement of a past-due balance on account. Aug. 18 Received payment in full from Mink Company on note due. Sept. 1 Sold $5,000 of merchandise to Glazer Company and accepted a $5,000, 6%, 6-month note for the amount due. Dec. 31 Made adjusting entry necessary for the outstanding notes receivable. Feb. 1, 2017 What journal entry would be necessary if payment in full was received from Creech, Inc.?

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