On June 30, 2024, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $35,000 on March 31, 2025. The fair value of the merchandise exchanged is $33,950. Esquire views the financing component of this contract as significant. Required: 1. 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 31, 2024 interest accrual, and the March 31, 2025 collection. 2. What is the effective interest rate on the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 nces 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 31, 2024 interest accrual, and the March 31, 2025 collection. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. View transaction list Journal entry worksheet < 1 2 3 4 Record the sale of merchandise. Note: Enter debits before credits. Date General Journal Debit Credit > Show less▲
On June 30, 2024, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The note requires payment of $35,000 on March 31, 2025. The fair value of the merchandise exchanged is $33,950. Esquire views the financing component of this contract as significant. Required: 1. 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 31, 2024 interest accrual, and the March 31, 2025 collection. 2. What is the effective interest rate on the note? Complete this question by entering your answers in the tabs below. Required 1 Required 2 nces 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 31, 2024 interest accrual, and the March 31, 2025 collection. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. View transaction list Journal entry worksheet < 1 2 3 4 Record the sale of merchandise. Note: Enter debits before credits. Date General Journal Debit Credit > Show less▲
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On June 30, 2024, the Esquire Company sold merchandise to a customer and accepted a noninterest-bearing note in exchange. The
note requires payment of $35,000 on March 31, 2025. The fair value of the merchandise exchanged is $33,950. Esquire views the
financing component of this contract as significant.
Required:
1. 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 31, 2024 interest accrual, and the March 31, 2025 collection.
2. What is the effective interest rate on the note?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
nces
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 31, 2024 interest accrual, and the March 31, 2025 collection.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round
intermediate calculations.
View transaction list
Journal entry worksheet
<
1
2
3
4
Record the sale of merchandise.
Note: Enter debits before credits.
Date
General Journal
Debit
Credit
>
Show less▲
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