On December 31, 2020, Nash Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Nash Co. agreed to accept a $261,600 zero-interest-bearing note due December 31, 2022, as payment in full. Hayduke is somewhat of a credit risk and typically borrows funds at a rate of 10%. Nash is much more creditworthy and has various lines of credit at 6%.

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(a)

Prepare the journal entry to record the transaction of December 31, 2020, for the Nash Co. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Date

Account Titles and Explanation

Debit

Credit

Dec. 31, 2020