On December 1, 2017, Boerne Company sold merchandise to a customer for $40,000. In payment for the merchandise, the customer signed a 6% note requiring the payment of interest and principal on March 1, 2018. How much interest revenue will the company recognize during 2017? In 2018?

Q2On June 30, 2018, Boerne Inc sold a tractor to a customer, accepting a noninterest bearing note promising payment of $240,000 in five years. The applicable effective interest rate is 7%. What amount of sales revenue would Boerne Inc recognize on June 30 for this transaction?