On May 1, 2021, a company lends $110,000 to one of its main suppliers and accepts a 12-month, 7% note. Record the acceptance of the note on May 1, 2021, the adjustment on December 31, 2021, and the cash collection on May 1, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

No Date General Journal Dr. Cr.

1 May 01, 2021 Notes receivable 110,000

Cash 110,000

2 December 31,2021 Interest receivable 5,133

Interest revenue 5,133

3 May 01, 2022 Cash 117,700

Notes receivable 110,000

Interest receivable 5,133

Interest revenue 2,567

Explanation:

1. Loan of $110,000 agaisnt a note receivable is recorded as Note receivable to cash.

2.

Interest of 9 months is accrued in 2021.

Interest revenue: $110,000 * 7% * 8/12 = $5,133

3.

Interest of 3 months is accrued in 2022

Interest revenue: $110,000 * 7% * 4/12 = $2,567