Ivanhoe Corp. sells idle machinery to Pharoah Company on July $1,2025,$ for $$34,000.$ Ivanhoe agrees to repurchase this equipment

from Pharoah on June $30,2026,$ for a price of $$35,360($an imputed interest rate of $4\%).$

$($a$)$

Prepare the journal entry for Ivanhoe for the transfer of the asset to Pharoah on July $1,2025.($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles

and enter O for the amounts. List debit entry before credit entry.$)$

Credit

July $1,2025$