On December 31, 20X1, Roker, Inc., reported notes receivable of $63,930,000. This amount represents the present value of future cash flows (both principal and interest) discounted at a rate of 11.12% per annum. The schedule of collections of the receivables is provided next:

Assume that the interest due is paid along with the face value of the receivables at the end of each year.

Required:

Provide journal entries to record the interest received and the notes receivable collected in each year.

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($ in thousands) Year Ending December Collections 20X2 $20,724 15,896 20X3 20X4 11,559 7,179 8,559 20X5 20X6 20X7 13 $63,930