On December 31,2009, Hurlty Co. performed environmental consulting services for Cascade Co. Cascade was short of cash, and Hurly Co. ageed to accept a 300,000 zero-interest-bearing note due December 31,2011, as payment in full. Cascade is some what of a cerdit risk and typically borrows funds at a rate of 10%. Hurly is much more creditworthy and has various lines of credit at 6%.