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On September 1, 2020, Teal Mountain Inc. sold goods to Monty Corp a new customer. Before shipping the goods, Teal Mountain's credit and collections department conducted a procedural credit check and determined that Monty is a high credit-risk customer. As a result, Teal Mountain did not provide Monty with open credit by recording the sale as an account receivable. Instead, Teal Mountain required Monty to provide a non-interest-bearing promissory note for $32,400 face value to be repaid in one year Monty has a credit rating that requires it to pay 8% interest on borrowed funds. Teal Mountain pays 6% interest on a loan recently obtained from its local bank. Teal Mountain has a December 31 year end. The tables in this problem are to be used as a reference for this problem Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1 (a) Prepare the entries required on Teal Mountain books to record the sale annual adjusting entry and collection of the note's full face value. (For calculation purposes, use 5 decimal places as displayed in the factor toble provided. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Debit Cr Date Account Titles and Explanation Notes Receivable September 1.2020 Sales Revenue D ss 2. 7 2 3 4 6 . 5 8 W E R T Y S D F G c. V BN Prepare the entries required on Teal Mountain's books to record the sale annual adjusting entry, and collection of the note's full face value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Debit Cred Date September 1, 2020 Account Titles and Explanation Notes Receivable Sales Revenue (To record interest income) (To record collection of the note receivable) eTextbook and Media List of Accounts Attempts: 0 of 1 used Submit Answer Save for later

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