On October 1, 2020, Blue Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $118,400, 10% note (a realistic rate of interest for a note of this type). The note required interest to be paid annually on October 1. Blues financial statements are prepared on a calendar-year basis. Assuming Valco Brothers Farm fulfills all the terms of the note, prepare the necessary journal entries for Blue Equipment Company for the entire term of the note. Assume that reversing entries are not made on January 1, 2021 and January 1, 2022.