On January$1,2023,$ Fayette Jewellers sold a diamond ring to a client. Terms of the sale were $ $1$ comma $400$ and a$0\%,$ $ $7$ comma $000$note$,$ payable in five annual payments of $ $1$ comma $400,$ with the first payment due on January$1,2024.$ The market rate of interest for transactions of this type was $10\%.$

Required

Prepare the journal entry to record the sale of the ring. Assume that the inventoriable cost of the ring was $ $6$ comma $300.$

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Part $1$

Record the journal entry to record the sales transaction of the ring. Do not record the effect on inventory. $($Record debits$$ first, and then credits. Explanations are not required. Leave unused cells blank. Round amounts to the nearest$$ dollar.$)$

Date

Accounts

Debit

Credit

January $1,2023$