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Hot Heat Steam Cleaning performs services on account. When a customer account becomes four months old, Hot Heat converts the account to a note receivable. During 2012, the company completed the following transactions:
Apr 28 Performed service on account for Sinclair Club, $18,000.
Sep 1 Received an $18,000, 60-day, 9% note from Sinclair Club in satisfaction of its past-due account receivable.
Oct 31 Collected the Sinclair Club note at maturity.
Requirement
1. Record the transactions in Hot Heat's journal.
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