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%.

Prepare the journal entries to record any adjusting entries needed at December 31, 2017. Assume that the sales of Shamrock' product to Whispering Winds occur 31% in year 1, 31% in year 2, 21% in year 3, and 17% in year 4. (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 (To record interest expense) (TO record sales of 1st year)