Shlee Corporation issued a 4 year, $60000, zero interest bearing note to Garcia company on Jan 1, 2014 and received cash of 60,000. In addition, Shlee agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4 year period. The market rate of interest for similar notes is 12%.

Prepare Shlee Corporation’s Jan 1 journal entry. Please explain and give detail calculation on getting the answer.