Make an Adjusting Journal Entries (AJE):

CMC often allows customers to finance the purchase of their products through long-term lending agreements and therefore reports Long-term Notes Receivable on their Balance Sheet. These notes are interest bearing and earn CMC interest revenue. The beginning balance of Interest Receivable at January 1, 2017 was $3,500. During 2017, cash received from customers for interest on these notes amounted to $17,600. You determine that the income statement for the year-ended December 31, 2017 should show Interest Revenue in the amount of $21,800. The adjusting entry to accrue interest revenue has not yet been recorded.