Notes Receivable Harrigan Enterprises utilizes Snoopy Systems to design and implement a cash management system. Due to Harrigan's cash management problems, it cannot currently pay for the system out of pocket. Snoopy chooses to extend a 6% note on January 1 for the $27,000 project cost. Required: 1. Prepare Snoopy's journal entry to record the service performed on January 1. If an amount box does not require an entry leave it blank Notes Receivable 27,000 Sales Revenue 27,000 (Record sale with note) 0 Feedback Check My Work 1. Revenue can be recognized when earned, even if the customer has not paid, as long as collectability is reasonably assured 2. Determine how much interest Snoopy will receive if the note is repaid on May 1. 2. Determine how much interest Snoopy will receive if the note is repaid on May 1. Feedback Check My Work 2. When calculating Interest, consider the principal, the annual interest rate and the duration of the note. 27.540 0 3. Provide Snoopy's journal entry to record the cash received to pay off the note and interest on May 1. If an amount box does not require an entry, leave it blank. Cash Interest Income Notes Receivable (Record collection of note plus interest) 0 27.540 X 0 27,540 x Feedback Check My Work 3. Interest Income is recognized as it is earned