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Ivanhoe sells 3D printer systems. Recently, Ivanhoe provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume
Ivanhoe sells 3D printer systems. Recently, Ivanhoe provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Ivanhoe sells Lyle Cartright a 3D system, receiving a $4,500 zero-interest-bearing note on January 1, 2020. The cost of the 3D printer system is $3,600. Ivanhoe imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1, 2020, and compute the total amount of revenue to be recognized in 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round present value factor calculations to 5 decimal places, eg. 1.25124 and the final answer to 0 decimal places eg. 58,971.) Account Titles and Explanation Notes Receivable Debit Credit Discount on Notes Receivable Sales Revenue (To record sales) Cost of Goods Sold Inventory
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