on june 30, 2018, the esquire company sold some merchandise to a customer for 30,000...
60.1K
Verified Solution
Link Copied!
Question
Accounting
on june 30, 2018, the esquire company sold some merchandise to a customer for 30,000 and agreed to accept as payment a noninterest bearing note with an 8% discount rate requiring the payment of 30,000 on March 31, 2019. the 8% rate is appropriate in this situation, esquire views the financing component of this contract as significant.
1. Prepare journal entries to record the sale of merchandise ( omit any entry that miight be required for the cost of the goods sold). the dec 31, 2018 interest accrual, and the march 31,2019 collection.
2. what is the effective interest rate on the note
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
