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=On January 1, 2016, Worthylake Company sold used machinery toBrown Company, accepting a $25,000, non-interest-bearing notematuring on January 1, 2018. Worthylake carried the machinery onits books at a cost of $22,000 and a current book value of $15,000.Neither the fair value of the machinery nor the note wasdeterminable at the time of sale; however, Brown’s incrementalborrowing rate was 12%.Required:Prepare the journal entries onWorthylake’s books to record:1.sale of the machinery2.related adjusting entries onDecember 31, 2016, and 20173.payment of the note by Brown on January 1, 2018Jan 1,16 Notes Receivable 25,000Accumulated Depreciation 7,000Gain on sale of Machinery 4,929.85Discount on Notes Receivable 5,070.15Machinery 22,000Dec 31,16 ???? 2,391.58Interest Income 2,391.58Dec 31, 17 ???? 2,678.57Interest Income 2,678.58Jan 1, 18 Cash ???? (NOT 25,000 as stated on another post)Notes Receivable ????