On October 1, 2017, Blue Spruce Corp., a farm equipment dealer, sold a harvesting machine to Coronado Industries. Instead of a cash payment, Coronado Industries gave Blue a $121,000, two-year, 10% note; 10% is a realistic rate for a note of this type. The note required interest to be paid annually on October 1, beginning October 1, 2018. Blues financial statements are prepared on a calendar-year basis.

a)Repeat the journal entries under the assumption that Blue Spruce Corp. uses reversing entries.