Exercise 7-14 (Part Level Submission)

On December 31, 2015, Concord Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Concord Co. agreed to accept a $340,000 zero-interest-bearing note due December 31, 2017, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 12%. Concord is much more creditworthy and has various lines of credit at 6%.

Assuming Concord Co.s fiscal year-end is December 31, prepare the journal entry for December 31, 2017.