Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer secured this amount by signing a note bearing 12% interest on February 1, 2019.

Required:

1. Prepare the journal entry to record the sale on February 1, 2019.

	Notes Receivable
	Sales Revenue
	Record sale

Feedback

1. Revenue can be recognized when earned, even if the customer has not paid, as long as collectability is reasonably assured.

2. Determine how much interest Link will receive if the note is repaid on December 1, 2019. Round your answer to the nearest whole dollar. $

Feedback

2. When calculating interest, consider the principal, the annual interest rate and the duration of the note.

3. Prepare Link's journal entry to record the cash received to pay off the note and interest on December 1, 2019. If an amount box does not require an entry, leave it blank.

	Cash
	Interest Income
	Notes Receivable
	Record collection of note