On December 31, 2011, Fenton Company sold equipment to Denver Inc., accepting a $275,000 noninterest-bearing note receivable in full payment on December 31, 2014. Denver Inc., normally pays 12% for its borrowed funds. The equipment is carried in Fenton's perpetual inventory records at 65% of its cash selling price.

2. Prepare Fenton's journal entry on December 31, 2012, necessitated by this transaction. (Hint: Prepare an amortization schedule for the loan.)

For Notes Payable how do you solve tot get 23,489?