On January 1, 2017,SwiftyCo. borrowed and received $508,000from a major customer evidenced by a zero-interest-bearing note due in3years. As consideration for the zero-interest-bearing feature,Swiftyagrees to supply the customer's inventory needs for the loan period at lower than the market price. The appropriate rate at which to impute interest is8%.

(a)Prepare the journal entry to record the initial transaction on January 1, 2017.(b)Prepare the journal entry to record any adjusting entries needed at December 31, 2017. Assume that the sales ofSwifty's product to this customer occur evenly over the3-year period.

(Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. 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 amount is entered. Do not indent manually.)

No.

Date

Account Titles and Explanation

Debit

Credit

(a)January 1, 2017

Cash 508,000

Discount on notes payable

Notes payable

(b)December 31, 2017

interest expense 10,160

discount on notes payable 10,160

(To record Interest Expense)

December 31, 2017

unearned sales revenue

sales revenue

trying to calculate the interest expense. 508,000*8%*3/12=10160 my calculation on interest expense is incorrect but not sure what i am doing wrong

(To record Unearned Sales Revenue)

can you help me within the next 30 minutes please