On June the Esquire Company sold merchandise to a customer and accepted a noninterestbearing note in exchange. The
note requires payment of $ on March The fair value of the merchandise exchanged is $ Esquire views the
financing component of this contract as significant.
Required:
Prepare journal entries to record the sale of merchandise omit any entry that might be required for the cost of the goods sold
any December interest accrual, and the March collection.
What is the effective interest rate on the note?
Complete this question by entering your answers in the tabs below.
Prepare journal entries to record the sale of merchandise omit any entry that might be required for the cost of the goods sold any
December interest accrual, and the March collection.
Note: If no entry is required for a transactionevent select No journal entry required" in the first account field. Do not round
intermediate calculations.
Journal entry worksheet
Record the sale of merchandise.
