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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:

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.

What is the effective interest rate on the note?

Complete this question by entering your answers in the tabs below.

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prepare journal entries to record the sale of merchandise $($omit any entry that might per reauired for the cost of the goods sold$)$ 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 tacount field. Do not cound.