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Johnson Company receives royalties on a patent it developed several years ago. Royalties are 6% of net sales, to be received on September 30 for
Johnson Company receives royalties on a patent it developed several years ago. Royalties are 6% of net sales, to be received on September 30 for sales from January through June and receivable on March 31 for sales from July through December. The patent rights were distributed on July 1, 2020, and Johnson accrued royalty revenue of $53,000 on December 31, 2020, as follows: General Journal Receivable-royalty revenue Royalty revenue Debit Credit 53,000 53,000 Johnson received royalties of $68,300 on March 31, 2021, and S93,000 on September 30, 2021. In December, 2021, the patent user indicated to Johnson that sales subject to royalties for the second half of 2021 should be $630,000 Required: Prepare any journal entries Johnson should record during 2021 related to the royalty revenue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet NO Date General Journal Credit Debit 68,300 IN 1 March 31, 2021 Cash Receivable - royalty revenue 68 300 September 30, 2021 2 93.000 Cash Receivable - royalty revenue 93,000 2 37,800 3 December 31, 2021 Receivable - royalty revenue Royalty revenue 37 800
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