Recording and Reporting Transactions with Short-Term, Interest-Bearing Note Receivable On May 1, Swimm Company sold merchandise to Lochte and received a $71,280 (face amount), one-year, non-interest-bearing note. The market rate is 10%. Lochte paid the note in full on its maturity date. Note: Round answers to the following questions to the nearest whole dollar. a. Prepare entries for Swimm Company on May 1 and December 31 (year-end adjustment). Amortize the discount on the note receivable using the straight-line method. Account Name Date May 1 Note Receivable Discount on Note Receivable Sales Revenue To record sale of merchandise. Dec. 31 Discount on Note Receivable Interest Revenue To record interest on note. v Dr. Cr. 71,280 0 0 6,480 0 64,800 4,320 0 0 4,320 b. Identify which accounts and amounts should be presented on the annual income statement and year-end balance sheet (ignoring cash). Income Statement Account Sales Revenue Interest Revenue Income Statement Amount 64,800 4,320 Balance Sheet Account Balance Sheet Amount, Dec 31 Note Receivable 69,120