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Question - 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, 2016.
3. Prepare any adjusting entry necessary on December 31, 2017.
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