Prepare any journal entries johnson should record

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Problem

Johnson Company receives royalties on a patent it developed several years ago. Royalties are 6% of net sales, to be received on September 30 for sales from January through June and receivable on March 31 for sales from July through December. The patent rights were distributed on July 1, 2015, and Johnson accrued royalty revenue of $57,000 on December 31, 2015, as follows: General Journal Debit Credit Receivable - royalty revenue 57,000 Royalty revenue 57,000 Johnson received royalties of $72,700 on March 31, 2016, and $97,000 on September 30, 2016. In December, 2016, the patent user indicated to Johnson that sales subject to royalties for the second half of 2016 should be $670,000.

Required:

Prepare any journal entries Johnson should record during 2016 related to the royalty revenue.

Reference no: EM131884731

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