Truck #2 has a list price of $20,000and is acquired for a down payment of $2,500cash and a zero-interest-bearing note with a face amount of $17,500. The note is due April 1, 2018. Larkspur would normally have to pay interest at a rate of9% for such a borrowing, and the dealership has an incremental borrowing rate of8%.

Prepare the appropriate journal entries for the above transactions for Larkspur Corporation