P7.8B (LO 4) (Notes Receivable with Realistic Interest Rate) On July 1, 2020, Otter Sea Equipment Company sold a fishing boat to James Brothers Yatching, Inc. In lieu of a cash payment James Brothers Yachting gave Otter Sea a 3-year, $150,000, 12% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on July 1. Otter Sea's finan- cial statements are prepared on a calendar-year basis. Instructions Assuming James Brothers Yatching fulfills all the terms of the note, prepare the necessary journal entries for Otter Sea Equip- ment Company for the entire term of the note.