On April 1, 2021, James Company, a calendar-year company sold merchandise to Herbert Company on credit and received in return an interest-bearing note receivable from Herbert Company. James Company will receive interest at the prevailing rate for note of this type. Both the principal and interest are due in one lump on March 31, 2022. When should James Company report interest revenue from the note receivable? Discuss the rationale for your answer. Your answer should be supported by citing ONLY from the FASB's pronouncements such as Concepts Statements and or Accounting Standards Codification (ASC). No other citations are acceptable.

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