On December 1, 2018, Liang Chemical provides services to a customer for $85,000. In payment for the services, the customer signs a three-year, 12% note. The face amount is due at the end of the third year, while annual interest is due each December 1.

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. Prepare the journal entries for the above transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No	Date	General Journal	Debit	Credit
1	December 01, 2018	Notes receivable	85,000
		Service revenue		85,000
2	December 31, 2018	Interest receivable	850
		Interest revenue		850
3	December 01, 2019	Cash
		Interest receivable
		Interest revenue
4	December 31, 2019	Interest receivable
		Interest revenue
5	December 01, 2020	Cash
		Interest receivable
		Interest revenue
6	December 31, 2020	Interest receivable
		Interest revenue
7	December 01, 2021	Cash
		Notes receivable		85,000
		Interest receivable
		Interest revenue