On January 1, 2024, Chopin Tubs sold a hot tub to Amadeus, receiving a two-year, noninterest-bearing note in exchange for a hot tub that normally sells for $10,000. The note requires payment of $12,100 on December 31, 2025. A rate of 10% is appropriate for this situation. Chopin Tubs views the financing component of this transaction to be significant.

Required:		15 points
1. Prepare the journal entry to record the sale.
2. Prepare any adjusting entries necessary on December 31, 2024.
3. Prepare any adjusting entries necessary on December 31, 2025