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Hello. I'm trying to figure what the journal entry would be for this question. Truck with a listing price of $48,800. It was acquired for
Hello. I'm trying to figure what the journal entry would be for this question.
Truck with a listing price of $48,800. It was acquired for a down payment of $6,100 cash and a zero-interest-bearing note with a value of $42,700. The note is due 1 year later. The normal interest rate is 9% for borrowing but the dealer ship has an incremental borrowing rate of 8%.
Thanks for any help.
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