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Can you please thoroughly explain how to work this out, thank you. Q2. On...

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Accounting

imageCan you please thoroughly explain how to work this out, thank you.

Q2. On 1/1/2017, Bing Corp. sells a refrigerator and receives $1,800 cash and a note receivable with three future and unequal annual payments. The PV of the three future payments is $1,266 and interest revenue for 2017 is $71 when amortizing the note using the effective interest rate. [NOTE: I do not provide the 2018 and 2019 payments. You can't derive those payments, so do not try.] Interest Revenue Reduction in BV of Note Recvble Book value of Note Recvble $1,266 Date 1/1/2017 12/31/2017 12/31/2018 12/31/2019 Total Cash Recvd 1,800 500 ? ? 3,200 Omitted intentionally (a) Make all entries by Bing for 2017. Date entries. Show any calculations you use in your answers. (b) What is the implied rate of interest? State your answer in percentage form to two decimal places (e., 1.53%)? Show calculations. Answer: Calculations

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