Scherzo Company purchased equipment from Rondo Corporation for $20,000.Scherzo paid no cash at the time of purchase.Instead Rondo permitted Scherzo to pay for the equipment by making four annual payments of $5,000.For Scherzo and for Rondo what processes are being used by these events? Explain your answer.

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The Answer of Scherzo Company purchased equipment from Rondo Corporation for $20,000.Scherzo paid no cash at the time of purchase.Instead Rondo permitted Scherzo to pay for the equipment by making four annual payments of $5,000.For Scherzo and for Rondo what processes are being used by these events? Explain your answer.

Scherzo Company Purchased Equipment from Rondo Corporation for $20,000