2.

Truck #2 has a list price of $41,120 and is acquired for a down payment of $5,140 cash and a zero-interest-bearing note with a face amount of $35,980. The note is due April 1, 2018. Buffalo would normally have to pay interest at a rate of 9% for such a borrowing, and the dealership has an incremental borrowing rate of 8%.

No.	Account titles and Explanation	Debit	Credit
2.	Trucks	?
	Discount on Notes Payable	?
	Cash		5140
	Notes Payable		35980