On January 1, 2021 Happy Tubs sold a hot tub to Monica, receiving a two-year, non...

On January 1, 2021 Happy Tubs sold a hot tub to Monica, receiving a two-year, 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, and happy tubs views the financing component of this transaction to be significant.

1. Prepare the journal entry to record the sale.

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