On June 1, 2015, Demer Consulting provides services to a customer for $150,000. To pay for the services, the customer signs a three-year, 12% note. The face amount is due at the end of the third year, while annual interest is due each June 1.

Required:

1. Record the acceptance of the note on June 1, 2015.

2. Record the interest collected on June 1 for 2016 and 2017, and the adjustment for interest revenue on December 31, 2015, 2016, and 2017.

3. Record the cash collection on June 1, 2018.