1. On January 1, 2019, Callier Co. sold merchandise to Bellevue Co under a non-interest-bearing note. The note requires Bellevue to pay $992,285 to Callier on Dec. 31, 2021, the notes maturity date. On January 1, 2019, Callier determined that the appropriate market rate of interest on notes of similar risk and maturity is 7%. Callier has a 12/31 fiscal year-end, uses the effective interest method, and will account for the non-interest bearing note using the gross method. On 1/1/2020, Callier determined that the market rate of interest on notes of similar risk and maturity had risen to 9%.

1a. Provide all of Calliers journal entries and adjusting journal entries to account for this note in 2019. Provide supporting calculations for all calculated amounts.