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On January 1, 2016, Happy Tubs sold a hot tub to Monica

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June 7th, 2024

On January 1, 2016, Happy Tubs sold a hot tub to Monica, receiving a two-month, non interest-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.1. Prepare the journal entry to record the sale.2. Prepare any adjusting entry necessary on December 31, 20163. Prepare any adjusting entry necessary on December 31, 2017

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