Prepare the journal entry to record the transaction

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Question - On December 31. 2017, Carla Vista Co. sold equipment to Tamarisk, Inc. Carla Vista Co. agreed to accept a $430,000 zero-interest-bearing note due December 31, 2019, as payment in full. Tamarisk, Inc. incorporated in 2017 and had very little credit history at the time of the transaction with Carla Vista. Therefore, at that time, Tamarisk typically borrowed funds at a rate of 8%. Carla Vista has along and positive credit history. Therefore, Carla Vista has various lines of credit at 4%. Prepare the journal entry to record the transaction of December 31, 2017, for Carla Vista CO.

Reference no: EM132488348

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