Frankia
Frankia
25.10.2019 • 
Business

On december 31, 2017, sunland co. sold equipment to splish brothers, inc. sunland co. agreed to accept a $560,000 zero-interest-bearing note due december 31, 2019, as payment in full. splish brothers, inc. incorporated in 2017 and had very little credit history at the time of the transaction with sunland. therefore, at that time, splish brothers typically borrowed funds at a rate of 10%. sunland has a long and positive credit history. therefore, sunland has various lines of credit at 5%.prepare the journal entry to record the transaction of december 31, 2017, for sunland co.

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