Husemann Co.’s assets include notes receivable from customers. During fiscal 2019, the amount of notes receivable averaged $525,000, and the interest rate of the notes averaged 4.2%.

Required:

a. Calculate the amount of interest revenue earned by Husemann Co. during fiscal 2019 and show in the horizontal model or write a journal entry that accrues the interest revenue earned from the notes.

b. If the balance in the Interest Receivable account increased by $6,400 from the beginning to the end of the fiscal year, how much interest receivable was collected during the fiscal year? Use the horizontal model, a T-account, or write the journal entry to show the collection of this amount.