On March 1, 2020, Larkspur Company sold goods to Goosen Inc. for $648,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $997,028 (an inputed rate of 9%). The goods have an inventory cost on Larkspurs books of $417,000. (a) Prepare the journal entries for Larkspur on March 1, 2020.

Date	Account Titles and Explanation	Debit	Credit
Mar. 1, 2020	Notes Receivable
	Sales Revenue
	Discount on Notes Receivable
	(To record sales)
	Cost of Goods sold
	Inventory
	(To record cost of goods sold)

(b) Prepare the journal entries for Larkspur on December 31, 2020.

Date	Account Titles and Explanation	Debit	Credit
Dec. 31, 2020	Discount on Notes Receivable
	Interest Revenue

2. Concord Company sold 9,800 Super-Spreaders on December 31, 2020, at a total price of $1,009,400, with a warranty guarantee that the product was free of any defects. The cost of the spreaders sold is $548,800. The assurance warranties extend for a 2-year period and are estimated to cost $43,200. Concord also sold extended warranties (service-type warranties) related to 1,800 spreaders for 2 years beyond the 2-year period for $10,800. Given this information, determine the amounts to report for the following at December 31, 2020: sales revenue, warranty expense, unearned warranty revenue, warranty liability, and cash.

Amounts Reported in Income
Sales revenue		$
Warranty Expense
Amounts Reported on the Balance Sheet
Unearned Service Revenue		$
Cash
Warranty Liability