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On January 1,2024, Happy Tubs sold a hot tub to Monica, receiving a two-year, noninterest-bearing...

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Accounting

On January 1,2024, Happy Tubs sold a hot tub to Monica, receiving a two-year, noninterest-bearing note in exchange for a hot tub that normally sells for $8,000. The note is for an amount that achieves an effective interest rate of 10% per year, and Happy Tubs views the financing component of this transaction to be significant.
Required:
Prepare the journal entry to record the sale.
Prepare any adjusting entries necessary on December 31,2024.
Prepare any adjusting entries necessary on December 31,2025.
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