The president informs you that beverly's building products agrees to convert the $14,000 overdue accounts receivable(invoice No.1119) balance to a 12% note due six months from today.

Is this entry correct?

Notes Receivable dr 10,080
Accounts Receivable cr 10,080

Debit Notes Receivable for $14,000 and Credit Accounts Receivable for $14,000

I do not know where your 10,080 came from

The 12% is interest that the customer will pay in addition to the $14,000 that is owed.

I multiplied 14,000 by 12% and then multiplied it by 6... for six months...