On March 1,2012,Bayonne Services Made a Loan to One of Its

question 132

Essay

On March 1,2012,Bayonne Services made a loan to one of its officers.The officer signed a 6-month note for $4,000 at 8%.Bayonne generally accrues interest at year-end only,so at the time the note matured,Bayonne had not accrued any interest revenue.On September 1,when the note matured,the officer settled in full with the company.Please provide the journal entry made by Bayonne when the note was settled.
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Definitions:

Higher-order Conditioning

A form of classical conditioning in which a stimulus is first made meaningful or significant through its association with another conditioned stimulus rather than with an unconditioned stimulus.

Sensitization

An increased reaction to a stimulus following repeated exposure to it, often leading to heightened sensitivity to related stimuli.

Habituation

The process by which an organism reduces its response to a repeated stimulus over time.

Higher-order Conditioning

A process in classical conditioning where a conditioned stimulus is paired with a new neutral stimulus, creating a second conditioned stimulus.