Insider Company manufactures and sells electrical generators. On January 1, 2017, the entity sold an electrical generator costing 700,000 for 1,000,000.

The buyer paid 100,000 down and signed a 900,000 noninterest bearing note payable in three equal installments every December 31.

The prevailing interest rate for a note of this type is 12%. The present value of an ordinary annuity of 1 for three period is 2.4018.

Required:

Prepare journal entries for the current year.