On Jan. 1, 2000, the Able Corp. sold merchandise inventory to the Bevis Corp, receiving in return a three-year, 4%, $50,000 note receivable. This note pays interest annually on Dec. 31*. The Jan. 1, 2000, market interest rate on notes of this type is 10%. Able has chosen the "fair value option" of reporting this note. On Dec. 31, 2000, the market interest rate on this type of note had dropped to 2%. Required: (a) Make the necessary Jan. 1, 2000 entry to record the sale of the merchandise by Able and (b) make the necessary Dec. 31, 2000 adjusting entry to report this note receivable at fair value.