Clancy Co. accepted a two-year noninterest-bearing note for $1,166,400 on January 1, 2020. The note was accepted as payment for merchandise with a fair value of $1,000,000. The effective interest rate is 8%. The cash collection on December 31, 2021, would be recorded as:
Clancy Co. accepted a two-year noninterest-bearing note for $1,166,400 on January 1, 2020. The note was accepted as payment for merchandise with a fair value of $1,000,000. The effective interest rate is 8%. The cash collection on December 31, 2021, would be recorded as:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Clancy Co. accepted a two-year noninterest-bearing note for $1,166,400 on January 1, 2020. The note was accepted as payment for merchandise with a fair value of $1,000,000. The effective interest rate is 8%.
The cash collection on December 31, 2021, would be recorded as:
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