On December $1,2019,$ Insto Photo Company purchased merchandise, invoice price $$35,000,$ and issued a $6\%,120-$day note to Ringo Chemicals Company. Insto uses the calendar year as its fiscal year and uses the perpetual inventory system.

Required:

Prepare journal entries on Insto$$s books to record the preceding information, including the adjusting entry at the end of the year and payment of the note at maturity.