On December 31, 2020, McCormick Limited sells manufacturing equipment to a customer on the following terms. The purchase price of $650,000 will be payable as follows:

• 12% immediately as cash payment
• The remaining $572,000 in 6 years.
• Interest of 3% is payable each December 31 on the balance of $572,000.

Prepare the journal entries for McCormick (the seller) for the years 2020 2022 assuming that the cash price of the equipment if purchased today would be $590,000. McCormick reports under IFRS.