IU D E B Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles at an agreed-upon price of $38,000. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $41,800 on December 31, 2021. Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 10% Required: 1. Prepare Artic Cat's journal entries at January 1, 2021 to record the sale. 2. Prepare Artic Cat's journal entries at December 31, 2021 to record the payment 5 from Seneca 5 7 Entry on January 1, 2020: 8 9 Account 10 Debit Credit 1 1 1 Account Debit Credit 12 13 14 15 Entry on December 31, 2020: 16 17 18 19 20 21 22 23 24 25 26 27 28 29 NNNN Pay e or money component of this arrangement to be significant and that the relevant interest rate is 10% 1 2 3 Required: 4 1. Prepare Artic Cat's journal entries at January 1, 2021 to record the sale. 2. Prepare Artic Cat's journal entries at December 31, 2021 to record the payment 5 from Seneca 6 7 Entry on January 1, 2020: B Account 0 1 2 Bonus receivable 3 Debit Credit 1 1 1 4 Cash Junt Debit Credit NNNN 5 Deferred revenue 6 Discount on notes receivable 17 Interest expense 18 19 Interest revenue 0 Liability for volume discount 21 Notes receivable 22 23 Sales revenue 24 25 26 27 28 29 30 31 32 33