Answer and Explanation:
The journal entries are shown below:
1. On March 1,2020
Note receivable Dr $1,062,937
To Sales revenue $660,000
To Discount on note payable $402.937
(being the note receivable is recorded)
Cost of goods sold Dr $400,000
To Inventory $400,000
(Being the cost is recorded)
2. On December 31, 2020
Discount on note payable ($660,000 × 10% × 10 months ÷ 12 months) $55,000
To Interest receivable $55,000
(Being discount is recorded)
