On 1/1/2023 ABC, Inc. sells some equipment in exchange for 5…
On 1/1/2023 ABC, Inc. sells some equipment in exchange for 5 annual payments of $5,000 per year due at the end of each year (so ABC will be receiving the first payment on 12/31/2023). ABC uses a 7% rate for discounting future cash flows. What is the journal entry(ies) that ABC (they are the seller!) would record on 1/1/2023 (you can ignore the cost of goods sold and inventory impact related to the cost of the equipment for this exchange and just focus on the revenue related accounts)?