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On December 31, 20x0, you make a large sale of inventory to a customer. You
offered your customer financing terms as follows:
$300,000 payable on December 31, 20x3
interest of 1.5% on the $300,000 payable on Dec 31, 20x1, 20x2 and
20x3.
Your incremental borrowing rate is 6% and you estimate that your customers
incremental borrowing rate is 8%.
Prepare all journal entries for this transaction for the years ended December 31,
20x0, 20x1 and 20x2.
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