Q Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying...
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Q Moon Ltd. sells custom made furniture on 24 months' interest free terms to qualifying customers. On 30 June 2023, Moon Ltd. sells $71,600 of furniture to Jessie Ltd., which cost $40,300, payable by 30 June 2025. By 30 June 2024, only 40% of the ordered furniture was delivered. The appropriate interest rate for this transaction is determined to be 11.20% per annum. Moon Ltd. uses perpetual system. By 30 June 2025, all payment was made, and the remaining furniture was delivered
Q4. Calculate the present value of the $71,600 to be received on 30 June 2025.
Q5. Present the journal entries to be recorded by Moon Ltd. on 30 June 2023, 30 June 2024 and 30 June 2025.
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