Teal Mountain Inc. lent $11,942 to Monty Corp., accepting Monty's $12,300, three-month, zero-interest-bearing note. The implied interest is approximately 12%.

Prepare Teal Mountain 's journal entries for the initial transaction and the collection of $12,300 at maturity.(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation Debit Credit (To record initial transaction) (To record collection at maturity)