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In june 30,2024 tge esquire comoany sold merchandise to a customer amd accepted a noninterest - bearing note in exchange. The note requires payment of 35,099 on march 31,2025. The fair value of the merchandise exchange is 33,950. esquire views the finsncing component of this contract as significant

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 $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 sole 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. Prepare joumal 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 recuired" in the first account field. Do not round intermediate calculations. Shuw lessa Journal entry worksheet Record the cash collection. Note: Enter debits before credits. Journal entry worksheet Record the interest accrual on December 31. Note: Enter debits before credits. Journal entry worksheet Record the interest accrual on March 31. Note: Enter debits before credits. Journal entry worksheet 4 Record the sale of merchandise. Note: Enter debits before credits

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