MODU x x AA- AAEEEE 01 Normal No Spacing Heading 1 Heading 2 On 1/1/20 Toyota sells a car for a non-interest bearing note. The car would normally sell for $75,000 in cash, but the customer instead opts to pay a lump sum of $100,000 in two years (this is the only payment). The car costs Toyota $55,000 to build. Assume that Toyota uses a perpetual inventory system and sells directly to the customer. 1. Record the two journal entries that Toyota should record for the sale (the second journal entry being for Cost of Goods Sold and Inventory). Also what is the gross profit generated on the date of sale (I will give significant partial credit if you get this part right)? 1/1/20 JE1 1/1/20 JE Gross Profit generated on 1/1/20 2. In the example given, the implied interest rate is 15.47 percent. Explain why and how this is so. Imagine you were explaining it to your boss. If you wish, you can assume that your boss is really smart and show him/her the formula to calculate the interest rate. Alternatively, you can demonstrate to your boss that this interest rate works for the facts at hand. In either case, you need to demonstrate your answer mathematically. MODU x x AA- AAEEEE 01 Normal No Spacing Heading 1 Heading 2 On 1/1/20 Toyota sells a car for a non-interest bearing note. The car would normally sell for $75,000 in cash, but the customer instead opts to pay a lump sum of $100,000 in two years (this is the only payment). The car costs Toyota $55,000 to build. Assume that Toyota uses a perpetual inventory system and sells directly to the customer. 1. Record the two journal entries that Toyota should record for the sale (the second journal entry being for Cost of Goods Sold and Inventory). Also what is the gross profit generated on the date of sale (I will give significant partial credit if you get this part right)? 1/1/20 JE1 1/1/20 JE Gross Profit generated on 1/1/20 2. In the example given, the implied interest rate is 15.47 percent. Explain why and how this is so. Imagine you were explaining it to your boss. If you wish, you can assume that your boss is really smart and show him/her the formula to calculate the interest rate. Alternatively, you can demonstrate to your boss that this interest rate works for the facts at hand. In either case, you need to demonstrate your answer mathematically