On 3/31/16, a Company delivered an equipment costing $75,000 to a customer in exchange for a promissory note of $100,000 payable in 4 years with annual interest payment of 5%, when the market rate of interest was 7%.
Required: Provide all relevant journal entries that the Company should record for the above, in 2016, assuming that the Company uses a perpetual inventory system and has Dec. 31 year-end.