Precision Machining sold Winters Manufacturing a CNC lathe. The lathe was delivered on January $1$ of the current year, and Precision received a note from Winters indicating that Winters will pay Precision $$60,000$ on a future date. Unless informed otherwise, assume that Precision views the time value of money component of this arrangement to be significant and that the relevant interest rate is $9\%.$

Required:

Assume the note indicates that Winters is to pay Precision the $$60,000$ due on the note on December $31$ of the current year. Complete the journal entry for Precision to record the sale on January $1$ of the current year.

Assume the same facts as in requirement $1,$ and complete the journal entry for Precision to record collection of the payment on December $31$ of the current year.

Assume instead that Winters is to pay Precision the $$60,000$ due on the note on December $31$ of the subsequent year. Complete the journal entry for Precision to record the sale on January $1$ of the current year.

Assume instead that Precision does not view the time value of money component of this arrangement to be significant and that the note indicates that Winters is to pay Precision the $$60,000$ due on the note on December $31$ of the current year. Complete the journal entry for Precision to record the sale on January $1$of the current year.

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