MEDLink System Inc. $($MEDLink$)$ is a privately held company specializing in customized medical software to manage patient records for the medical offices, medical laboratories and hospitals across Canada. MEDLink users are healthcare administrators and professionals $($lab technicians, nurses and doctors$)$ across Canada. The company has been operating from its headquarters in the Lower Mainland of BC since Jan $1,2018.$ The company$$s fiscal year end is December $31.$ For the first time since its inception, an external auditor had been appointed to conduct an audit prior to issuing the financial statements planned for April $15,2022.$ Revenue The Company$$s revenue stems from two sources: i$)$ subscription and support, and ii$)$ professional services. Subscription and support revenues: include subscription fees from customers accessing the Company$$s enterprise cloud computing services, software license renewals, and support revenue from the sales of support and updates beyond the basic subscription fees. Professional service revenues: include professional and advisory services for process mapping, training and product customization. On average, the professional service revenues are $15\%$ of the subscription and support revenues for the first year. Since its inception, MEDLink would deliver $70\%$ of the services in the same period as the same of sale $($i$.$e$.$ same year when the contract is signed$).$ The remaining $30\%$ of the services would be delivered in the following year. Given that all the services would be delivered eventually and that the contract is non$-$cancellable and refundable, the management did not see the need to record revenues at different deliverables. As such, the company has been recording revenue as a single transaction at the point of sale. The price of MEDLink system solution is $$21,600$ per user over a $3-$year period for subscription and support. So if the company signs a contract with a customer on September $15,2021,$ the company would record $$21,600$ on that date. At the end of $3$ years, there is an annual renewal fee for $$3,600$ per user. The amount is automatically and fully recognized at the time when the software license expires. For example, if the software expires on June $30,2021$ for one user at Clinic A$,$ the company will automatically record $$3,600$ on July $1,2022$ assuming that the clinic would renew MEDLink$$s services. The Company usually invoices its customers two months prior to its renewal date, and its payment terms provide customers within $60$ days of invoice. Here are some historical data on the revenue and user count.

$\backslash$table$[[,,$YE $2021,,$YE $2020,,$YE $2019,,$YE $2018],[$Number of NEW Users,,$1,893,,1,456,,1,120,,800],[$Revenue$],[$Subscription $-$ Initial,$$,34,070,400,$$$,26,208,000,$$$,20,160,000,$$$,14,400,000],[$Subscription $-$ Renewal,$$,2,880,000,$$$,-,$$$,-,$$$,-],[$Professional Services,$$,1,703,520,$$$,1,310,400,$$$,1,008,000,$$$,720,000],[$TOTAL Revenue,$$,38,653,920,$$$,27,518,400,$$$,21,168,000,$$$,15,120,000]]$Accounts Receivable:

Given that the customers are financially sound, the management has been allocating a nominal $3\%$ of accounts receivable as uncollectible since its inception. Starting $2021,$ the company abruptly stopped allocating any allowance for uncollectible even though the amount of receivables had grown quite dramatically. One of MEDLink$$s senior management $($Harry Spaar$)$ who happened to be a shareholder in the company commented $$write$-$off does not exist in our industry so why allocate allowance which will only lower our profitability.$$ In October $2020,$ the company factored with recourse receivables with a carrying amount of $$1,000,000.$ In exchange, the factor agreed to pay $95\%$ of the face value of the receivables less $3\%$ holdback on the date of transfer. For $2020$ fiscal year end, the company removed $$1,000,000$ from its accounts receivable and recorded an interest expense of $$30,000.$ By February $2021,$ the factor collected a total of $93\%$ of face value of receivables. The company subsequently recorded another $$30,000$ interest expense in $2021.$

Required:

Regarding the Revenue and Accounts receivables, provide correct calculations and journal entries for each transaction in compliance with IFRS. Include

your assumptions in the calculations$/$journal entries.