INTEREST REVENUE, COLLECTIONS OF CASH FOR INTEREST, AND ADJUSTMENTS. Aloma, Inc., often lends cash to its customers. At January 1, customers owed Aloma $7,000 of interest on outstanding notes. During the year, Aloma received

$64,800 of interest, $7,000 of which was for the January 1 receivable. Aloma credited the entire amount received to interest receivable. At December 31, Aloma has interest receivable of $8,200, none of which has been recorded.

REQUIRED:

1. What was the amount of interest revenue for the year?

2. Prepare the journal entry to adjust the interest revenue and interest receivable accounts at December 31.