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11. (12 marks) On May 31, 2017, John Deere sold a tractor to Dirtco in...

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Accounting

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11. (12 marks) On May 31, 2017, John Deere sold a tractor to Dirtco in $540,000 non-interest bearing note. Dirtco will make two $200,000 each; one on May 31, 2018, and one on May 3 2010, they will pay the remaining $140,000. John 31. Assume that your year-end adjusting entries are rey show the reversal entry. Dirtco would normally pay an interes irtco in exchange for a three year, make two equal payments of $140,000. John Deere's vear-end is December ne on May 31, 2019. On May 31, ries are reversed. You do not need to ay an interest rate of 7%. Required: Prepare the following journal entries for the note for John Deere: 1. Initial sale. Ignore the COGS entry. 2. December 31, 2017, adjusting journal entry. 3. May 31, 2018, receipt of cash. 4. December 31, 2018, adjusting journal entry. Calculate and journalize amounts to the nearest dollar. Note that we are som Deere, the seller of the tractor. 40587.6 2018-3-31 200, ou 4 5 6 7 8. 8 12.11+2 20 a anu 2018-3-31 200.000 2 3 8 5 6 7 8 9 2020-3 3 140,so December 31 year end 661523

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