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Current Attempt in Progress

Sheridan Corp. sells idle machinery to Carla Vista Company on July $1,2025,$ for $$33,000.$ Sheridan agrees to repurchase this equipment from Carla Vista on June $30,2026,$ for a price of $$34,320($an imputed interest rate of $4\%).$

$($a$)$

Prepare the journal entry for Sheridan for the transfer of the asset to Carla Vista on July $1,2025.($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 $0$ for the amounts. List debit entry before credit entry.$)$

$\backslash$table$[[$Date Account Titles and Explanation Credit,$],[$July $1,2025,],[,$Accounts Payable$],[,$Accounts Receivable$],[$Cash$,],[$Cost of Goods Sold,$],[$List of Acci,Interest Expense$],[$Liability to Carla Vista Company,$],[$Save for Later,No Entry$],[$Purchases$,]]$