On September $1,2023,$ Metlock, Inc. sold goods to Bridgeport Corp., a new customer. Before shipping the goods, Metlock's credit and

collections department conducted a credit check and determined that Bridgeport is a high credit$-$risk customer. As a result, Metlock

did not provide Bridgeport with open credit by recording the sale as an account receivable. Instead, Metlock required Bridgeport to

provide a non$-$interest$-$bearing promissory note for $$44,800$ face value, to be repaid in one year. Bridgeport has a credit rating that

requires it to pay $12\%$ interest on borrowed funds. Metlock pays $10\%$ interest on a loan recently obtained from its local bank. Metlock

has a December $31$ year end and follows IFRS.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

$($a$)$

Your answer is partially correct.

Prepare the entries required on Metlock's books to record the sale, annual adjusting entry, and collection of the note's full face

value. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided. Credit account titles are automatically

indented when the 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. Record journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

:e

$2024$

Account Titles and Explanation

Debit

Notes Receivable

Sales Revenue

Notes Receivable

Interest Income

$$

$$

Notes Receivable

$($To record interest income$)$

$1792$

$1792$

$($To record collection of the note receivable$)$