Notes Receivable}

Kelsey's Kleening provides cleaning services for Clinton Inc., a business with four buildings. Kelsey's assigned different cleaning charges for each building based on the amount of square feet to be cleaned. The charges for the four buildings are \(\$ 35,000, \$ 27,000, \$ 45,000\), and \(\$ 10,000\). Clinton secured this amount by signing a note bearing 7\% interest on March 1, 2018.

\section*{Required:}

1. Prepare the journal entry to record the sale on March 1, 2018 .

2. Determine how much interest Kelsey will receive if the note is repaid on December 1, 2018.

3. Prepare Kelsey's journal entry to record the cash received to pay off the note and interest on December \(1,2018\).

\section*{OBJECTIVE 8 Brief Exercise