On July 1, 2020, Indigo Inc. made two sales.

1.		It sold land having a fair value of $905,820 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,425,321. The land is carried on Indigo's books at a cost of $599,100.
2.		It rendered services in exchange for a 3%, 8-year promissory note having a face value of $409,970 (interest payable annually).

Indigo Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Indigo Inc. for the sales transactions above that took place on July 1, 2020.

No.	Date	Account Titles and Explanation	Debit	Credit
1.	July 1, 2020	Notes receivable
		land
		discount on notes receivable
		gain on disposable land
2.	July 1, 2020	notes receivable
		service revenue
		discounts on notes receivable