Facts: On May 1, 2018, Francis Company, a calendar-year company sold merchandise to Logan Company on credit and received in return an interest-bearing note receivable from Logan Company. Francis Company will receive interest at the prevailing rate for note of this type. Both the principal and interest are due in one lump on April 30, 2019.

When should Francis Company report interest revenue from the note receivable in 2018 and 2019? Discuss the rationale for your answer.