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Link Communications programs voicemail systems for businesses. For a recent project, they charged $135,000. The customer...

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 7% 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 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. $ 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.

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Answer #1

Journal entry :

Date account and explanation debit credit
Feb 1,2019 Notes receivable 135000
Sales revenue 135000
(To record sales )

2. Determine how much interest Link will receive if the note is repaid on December 1, 2019.

Interest revenue = 135000*7%*10/12 = $7875

3) Journal entry :

Date account and explanation debit credit
Dec 1,2019 Cash (135000+7875) 142875
Notes receivable 135000
Interest revenue 7875
(To record cash received)
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