On January 1, 2018, Worthylake Company sold used machinery to Brown Company, accepting a $25.000, non-interest-bearing note maturing on January 1, 2021. Worthyake cared the machinery on its books a book value of $16,000. Neither the fair value of the machinery nor the note was determinable at the time of sale; however, Brown's incremental borrowing rate was 12% of 1000 and Required: Prepare the joumal entries on Worthyleke's books to record 1. sale of the machinery 2. related adjusting entries on December 31, 2019, and 2020 3. payment of the note by Brown on January 1, 2021