a) Thomas and Friends Inc. lent $49,587 to Marshall Inc, accepting Marshall's 2-year, S60,000, zero-interest-bearing note. The implied interest rate is 10%. Prepare Thomas and Friends Inc's journal entries for the initial transaction, recognition of interest each year, and the collection of $60,000 at maturity. Thomas and Friends follows IFRS. I Answer: Date Particulars Debit Credit merchandise vras b) Information on Nail Corp. which reports under ASPE, follows: July 1 - Nail Corp. sold to Global Ltd. Merchandise having a sales price of $9,000 terms 2/10, n/60. Ignore cost of goods sold. July 3 - Global Ltd. Returned defective merchandise having a sales price of $700. the not saleable and was scrapped. July 5 - Accounts receivable of $19,000 are factored with Joan Credit corp. without recourse at a financing charge of 9%. Cash is received for the proceeds and collections are handled by the finance company. July 9 - Specific accounts receivable of $15,000 are pledged to City Credit Corp. as security for a loan of $11,000 at a finance charge of 3% interest on the outstanding balance. Nail Corp. will continue to make the collections. All the accounts receivable pledge are the discount period and were originally subject to a 2% discount. Dec 29 - Global Ltd. Notifies Nail Corp.that it is bankrupt and will be able to pay only 10% of its account. Give the entry to write off the uncollectible balance the allowance method. Instruction: i) ii) Prepare all necessary journal entries on Nail Corp's books. Would your treatment of the July 5 transaction changes if Nail Corp. corproported under IFRS? if yes, how