JD Company owns a 100% WI in a proved property with net capitalized costs of $200,000. JD Company sold the lease for $350,000 cash and a production payment of $160,000, plus interest of 8% to be paid out of the proceeds from the first 55% of the oil produced. Satisfaction of the retained production payment is not reasonably assured. The fair market value of the production payment interest is estimated to be $50,000.

REQUIRED: Give the entry to record the conveyance assuming that JD Company uses the successful efforts method.