Selected balances of the Harold Corporation's accounts at January 1, 20x2 are as follows:
Accrued Interest Receivable
Note Receivable, short term
Note Receivable, long-term
$16,000
100,000
100,000
The notes receivables are from a major supplier. Interest for twelve months on all notes was collected on May 1, 20x2 The rate is 12% per annum. The principal on the current notes was collected on May 1, 20x2. The principal on the remaining notes is payable on May 1, 20x5.
The Harold Corporation uses reversing entries.
Prepare all journal entries relative to these notes for the year 20x2.