On April 1, 2020, Mountain Company sold merchandise and received a $48,000, three-year, noninterest-bearing note. The market rate is 6%. Mountain Company has a March 31 year-end. The company uses the effective interest method to amortize any discount.

Prepare all entries for Mountain Company over the notes term, including year-end adjustments.

Account Name Dr. Date April 1, 2020 Mar. 31, 2021 Mar. 31, 2022 Mar. 31, 2023 To record interest on note Mar. 31, 2023 To record settlement of