On January 1st, 2020, the Mary Jane P. Pascua Corporation receices a four year, $50,000, sero interest bearing note in payment of goods sold to be paid on December 31st, 2023. the value of the inventory was $20,000. the present value of the note equals the agreed upon sales price of $32, 937.

Required:

1. prepare the journal entry to record the sale on January 1st, 2020.

2. prepare the journal entry to record the interest accrual on Decemver 31st , 2020.

3. Prepare the journal entry to record the payment on December 31st, 2023.