Question: On December 1, 2012, Liang Chemical provides services to a customer for $80,000. In payment for the services, the customer signs a three-year, 12% note. The face amount and all interest are due at the end of the third year.
Required: 1. Record the acceptance of the note on December 1, 2012.
2. Record the adjustment for interest revenue on December 31, 2012, 2013, and 2014.
3. Record the cash collection on December 1, 2015.