On January $1,2024,$ Happy Tubs sold a hot tub to Monica, receiving a two$-$year, noninterest$-$bearing note in exchange for a hot tub that normally sells for $$8,000.$ The note is for an amount that achieves an effective interest rate of $10\%$ per year, and Happy Tubs views the financing component of this transaction to be significant.

Required:

Prepare the journal entry to record the sale.

Prepare any adjusting entries necessary on December $31,2024.$

Prepare any adjusting entries necessary on December $31,2025.$