Recording Entries for Note Payable Exchanged for Cash and Noncash Consideration On January 1, Allen Corp. issued a 3-year, zero-interest-bearing note payable for $17,000 to Town Corp. for a cash receipt of $17,000. In lieu of interest payments, Allen Corp. agreed to sell merchandise to Town Corp. at a discount and provide free shipping during the 3-year period. The market rate for this note is 8%. Record the journal entry for Allen Corp on January 3 for issuance of the note payable Note: Round your answer to the nearest whole dollar Date Jan 1 Cash Account Name Interest Expense Note Payable Discount on Note Payable To record issuance of note Dr. Cr 17,000 640 0 17,000 0