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WOWS w Sign in 9 History 12 Exercise 6-12 (Algo) Time value of money for accounts receivable [LO6-6] Arctic Cat sold Seneca Motor Sports a

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WOWS w Sign in 9 History 12 Exercise 6-12 (Algo) Time value of money for accounts receivable [LO6-6] Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic received a note from Seneca indicating that Seneca will pay Arctic $35,700 on a future date. Unless Informed otherwise, assume that Arctic views the time value of money component of this arrangement to be significant and that the relevant interest rate is 7% (EV. $1. Ey of S. EVA of $1. PVA of $1. FVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: 1. Assume the note indicates that Seneca is to pay Arctic the $35,700 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1 , 2021, 2 Assume the same facts as in requirement 1 and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021 3. Assume instead that Seneca is to pay Arctic the $35.700 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021. 4. Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $35,700 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021 (if no entry is required for a transaction/event, select "No journal entry required" In the first account field. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet Assume the note indicates that Seneca is to pay Arctic the $35,700 due on the note on December 31, 2021. Record collection of the payment on December 31, 2021. Note: Enter debits before credits. General Journal Date December 31, 2021 Debit Credit Record entry Clear entry View general journal Journal entry worksheet

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