Riker receives $43,000 from Troy as payment for a vehicle that has a fair value...
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Accounting
Riker receives $43,000 from Troy as payment for a vehicle that has a fair value of $54,300. The $43,000 constitutes full payment for the vehicle as specified in the sales contract. Assume that the time value of money is viewed as significant for this contract.
Required:
(a) Did Troy pay Riker before or after delivery of the vehicle?
(b) Prepare the journal entry Riker would make to record receipt of Troys payment, assuming no interest revenue or interest expense had been recorded previously.
(c) Prepare the journal entry Riker would make to record delivery of the vehicle, assuming no interest revenue or interest expense had been recorded previously.
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