On March 1, 2020, Windsor Company sold goods to Goosen Inc. for $714,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,203,132 (an imputed rate of 11%). The goods have an inventory cost on Windsor’s books of $439,000. (a) Prepare the journal entries for Windsor on March 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) (b) Prepare the journal entries for Windsor on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
On March 1, 2020, Windsor Company sold goods to Goosen Inc. for $714,000 in exchange for a 5-year, zero-interest-bearing note in the face amount of $1,203,132 (an imputed rate of 11%). The goods have an inventory cost on Windsor’s books of $439,000.
(a) Prepare the
(b) Prepare the journal entries for Windsor on December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
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