On January 1, 2017, Shamrock Inc. borrowed and received $200,000 from a major customer, Whispering Winds Corp. The debt is evidenced by a zero-interest-bearing note due in 4 years. Shamrock, as consideration for the zero-interest-bearing feature of the note, agrees that it will supply inventory to Whispering Winds for the loan period at a below-market price. The appropriate rate at which to impute interest is 7%.

Your answer is partially correct. Prepare the journal entry to record the initial transaction on January 1, 2017. (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.) Account Titles and Explanation Debit Credit Cash 200000 Discount on Notes Payable 41234 Notes Payable 200000 Unearned Sales Revenue 41234