Zagat Inc. enters into an agreement on March 1, 2014, to sell Werner Metal

Zagat Inc. enters into an agreement on March 1, 2014, to sell Werner Metal Company aluminum ingots in 2 months. As part of the agreement, Zagat also agrees to repurchase the ingots in 60 days at the original sales price of $212,000 plus 2%. (Because Zagat has an unconditional obligation to repurchase the ingots at an amount greater than the original sales price, the transaction is treated as a financing.)Prepare the journal entry necessary on March 1, 2014. (If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditMarch 1, 2014(To record repurchase agreement with Werner Metal Company)Prepare the journal entry for the repurchase of the ingots on May 1, 2014.(If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)DateAccount Titles and ExplanationDebitCreditMay 1, 2014(To record payment plus interest on financing)

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