Pelong Corporation sells land for $80,000 on credit, requiring a $40,000 payment in 6 months with the remainder paid in 12 months. Pelong considers this to be a transaction incidental to its operations. Pelong had originally purchased the land at a cost of $50,000. It uses the installment method to record this transaction.
Prepare the journal entries to record the sale of the land and the first $40,000 receipt.