On July 1, 2016, the Foster Company sold inventory to the Slate Corporation for $450,000. Terms of the sale called for a down payment of $112,500 and three annual installments of $112,500 due on each July 1, beginning July 1, 2017. Each installment also will include interest on the unpaid balance applying an appropriate interest rate. The inventory cost Foster $157,500. The company uses the perpetual inventory system