On December 31, 20x0, the Western Corporation sold inventory to Southern Inc. on the following terms: the full value of the inventory of $400,000 is payable on December 31, 20x3 and interest of 3% on the face value of the note ($400,000) is payable each December 31. Western's incremental borrowing rate is 5% and Southern's incremental borrowing rate is 9%. Required - Prepare all journal entries relating to the above transaction for the length of the note assuming that Western is: i. ii. a) b) c) a publicly accountable entity, and a private company following ASPE who wants to keep accounting for these types of transactions as simple as possible Repeat Part (a) on the assumption that the terms are as follows: Southern is to pay Western equal annual payments of principal and interest at an interest rate of 3% over 4 years starting December 31, 20x1. Assume now that neither company's incremental borrowing rate is known but we know that the cash price of the equipment is $350,000. The terms are as follows: 0% interest for 3 years and the full $400,000 is payable on December 31, 20x3. Assuming that Western is a publicly accountable entity, prepare all journal entries for the length of the note.