Chen Inc. accepted a two-year non-interest-bearing note with a principal of $605,000 on January 1, 2020. The interest is paid annually on Dec 31^stand the note is due on Dec 31^st2021. This note was accepted as payment for the sale of merchandise with a fair value of $500,000. The merchandise cost Chen Inc. $440,000 to produce. The effective interest rate is 5%. The firm uses perpetual inventory.

Provide the journal entries on Jan 1^st2020.

Provide the adjusting entries on Dec 31^st2020.

Provide the relevant journal entries on Dec 31st 2021.