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Bengro purchased a tractor for its farming operations. The tractor had a list price of $400,000...

Bengro purchased a tractor for its farming operations. The tractor had a list price of $400,000 from the vendor. Bengro paid cash of $100,000 on the date of sale and signed a non-interest-bearing note payable to the vendor with a face amount of $340,000 due two years from the date of sale. The normal rate of interest on a similar note would be 10%.

Prepare Bengro’s journal entry on the date it purchased the tractor.

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