Prepare the journal entry(ies)

Note receivable

Doyle Games is a local game company that needed some new computers and virtual reality studio equipment. In January, All Starr entered into an agreement with Doyle Games, selling them $80,000 in equipment but agreeing not to collect payment for three years. Doyle Games is expecting a grant from the government that will be paid in three years time. All Starr would normally charge interest of 8% but has agreed to waive the interest for this contract. The $80,000 balance owing from Doyle has been recorded as a note receivable. All Starr recorded a gain on the sale of equipment of $25,000