Question: On July 1, 2014, Agincourt Inc rendered services in exchange for a 3%, 6-year promissory note having a face value of $405,600 (interest payable annually). Agincourt Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customer in this transaction has credit rating that requires them to borrow money at 11% interest.
Record the journal entry that should be recorded by Agincourt Inc. for the sales transaction above that took place on July 1, 2014.