Smith Inc. sold and delivered a product to a customer on December 31, 2019 for 6 payments over 3 years, no interest. The customer will make six SEMI-ANNUAL payments of $400 each, starting June 30, 2020 (6 payments in total, $400 every six months). The customers borrowing rate for a similar transaction would normally be 6%. The product inventory cost was $1200. Smith Inc. has a Dec. 31 year end and follows IFRS. Required: Show and label all calculations. (Round to the nearest dollar.)

a) Calculate the revenue Smith Inc. should record on the product sale in 2019.

b) Prepare the journal entries for Smith Inc. on the following dates:

i) December 31, 2019 on sale of the product

ii) June 30, 2020 on receipt of the first payment

iii) Dec 31, 2020 on receipt of the second payment

c) What is the total value recorded for notes / interest receivable relating to this note on the statement of financial position at December 31, 2020? (After the payment was made on that date.)