Problem
On June 30, 2016, the Esquire Company sold some merchandise to a customer for $49,000 and agreed to accept as payment a noninterest-bearing note with an 8% discount rate requiring the payment of $49,000 on March 31, 2017. The 8% rate is appropriate in this situation.
Required:
1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2016 interest accrual, and the March 31, 2017 collection.
Record the sale of merchandise. 6/30/19
Record the interest accrual on December 31. 12/31/16
Record the interest accrual on March 31. 3/31/17
Record the cash collection. 3/31/17.