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On December 1, 2018, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs a three-year, 10% note.
On December 1, 2018, Liang Chemical provides services to a customer for $90,000. In payment for the services, the customer signs a three-year, 10% note. The face amount is due at the end of the third year, while annual interest is due each December 1. Required:
1. Record the acceptance of the note on December 1, 2018. 2. Record the interest collected on December 1 for 2019 and 2020, and the adjustment for interest revenue on December 31 for 2018, 2019, and 2020. 3. Record the cash collection on December 1, 2021.
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