Part B please

On January 1, 2017, Metlock Inc. borrowed and received $400,000 from a major customer, Bridgeport Corp. The debt is evidenced by a zero-interest-bearing note due in 4 years. Metlock, as consideration for the zero-interest-bearing feature of the note, agrees that it will supply inventory to Bridgeport for the loan period at a below-market price. The appropriate rate at which to impute interest is 7%. (a) Your answer is 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 400000 Discount on Notes Payable 94840 Notes Payable 400000 Unearned Sales Revenue 94840 (b) Prepare the journal entries to record any adjusting entries needed at December 31, 2017. Assume that the sales of Metlock' product to Bridgeport occur 35% in year 1, 35% in year 2, 25% in year 3, and 5% 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 for the amounts.) Account Titles and Explanation Debit Credit (To record interest expense) (TO record sales of 1st year) e Textbook and Media