Exercise $6-12($Algo$)$ Time value of money for accounts receivable $[$L$06-6]$

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 $$30,700$ 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 $12\%.($FV of

$$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)($Use appropriate factor$($s$)$ from the tables provided.$)$

Required:

Assume the note indicates that Seneca is to pay Arctic the $$30,700$ due on the note on December $31,2021.$ Prepare the journal

entry for Arctic to record the sale on January $1,2021.$

Assume the same facts as in requirement $1,$ and prepare the journal entry for Arctic to record collection of the payment on

December $31,2021.$

Assume instead that Seneca is to pay Arctic the $$30,700$ due on the note on December $31,2022.$ Prepare the journal entry for

Arctic to record the sale on January $1,2021.$

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 $$30,700$ due on the note on December $31,2021.$ Prepare the journal entry for Arctic

to record the sale on January $1,2021.$