On August 1, 2007 Darmow Corporation purchased a new machine on a deferred payment basis. It made a down payment of $1,000 and will make four monthly installments of $2,500 each beginning on September 1, 2007. The cash equivalent price of the machine was $9,500. Darmow incurred and paid installation cost amounting to $300.

Required
Prepare the journal entry to record the acquisition of the machine.