On December 1, 2013, Davenport Company sold merchandise to a customer for $20,000. In payment for
the merchandise, the customer signed a 6% note requiring the payment of principal and interest on March
1, 2014. The cost of the merchandise was $15,000, and the company uses the perpetual inventory system.
(1) Prepare the journal entry to record the sale on December 1, 2013.
(2) Prepare the journal entry to record the accrual of interest at December 31, 2013.
(3) Prepare the journal entry to record the collection of the note in full on March 1, 2014.