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Exercise 7-20(Algo) Noninterest-bearing notes receivable [LO7-7] On June 30,2024, the Esquire Company sold...

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Accounting

Exercise 7-20(Algo) Noninterest-bearing notes receivable [LO7-7]
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 $41,000 on March 31,2025. The falr value of the merchandise exchanged is $39,155. Esquire views the
financing component of this contract as signlficant.
Required:
Prepare journal entrles 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.
What is the effect/ve interest rate on the note?
Complete this question by entering your answers in the tabs below.
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.
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