On June $30,2024,$ the Esquire Company sold some merchandise to a customer for $$56,000.$ In payment, Esquire agreed to accept a $8\%$ note requiring the payment of interest and principal on March $31,2025.$ The $8\%$ rate is appropriate in this situation.

Required:

Prepare journal entries to record the sale of merchandise $($omit any entry that might be required for the cost of the goods sold$),$ the December $31,2024$ interest accrual, and the March $31,2025$ collection.

If the December $31$ adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over$-$ or understated in $2024$ and $2025?$