A scotch whiskey blending company, Glasgow Premium, has an inventory of maturing whiskey. Glasgow Premium agrees to sell a certain quantity of its product to a local bank for 5 million, and then to buy it back one year later for 5.5 million. The product does not leave Glasgow Premium premises.

Describe the possible accounting treatments of this transaction by Glasgow Premium. State which is the most appropriate treatment and explain why this is so. Provide all journal entries for this transaction.