Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: kieso, weygandt and warfield.

14th Edition

9780470587232, 470587288, 470587237, 978-0470587287

More Books

Students also viewed these Accounting questions