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On October 1, 2020, Monty sold one of its super deluxe combination gas/charcoal grills to...

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Accounting

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On October 1, 2020, Monty sold one of its super deluxe combination gas/charcoal grills to a local builder. The builder plans to install it in one of its "Parade of Homes" houses. Monty accepted a 3-year, zero-interest-bearing note with face amount of $5,803. The grill has an inventory cost of $2,724. An interest rate of 10% is an appropriate market rate of interest for this customer. Prepare the journal entries on October 1, 2020, and December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter for the amounts. Round present volut factor calculations to 5 decimal places, eg. 1.25124 and the final answer to decimal places eg, 58,971) Date Account Titles and Explanation Debit Cres Oct 1.2020 Notes Receivable Discount on Notes Recevable Sales Revenue (To record sales) Cost of Goods Sold Triventory (To record cost of goods sold) Dec 31, 2020 Discount on Not Receivable interest Revenue

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