Question
On April 1, 2019, Silver Company sold goods to Turquoise Company for P1,560,000.Silver Company received as payment a non-interest bearing note requiring payments of P260,000
On April 1, 2019, Silver Company sold goods to Turquoise Company for P1,560,000.Silver Company received as payment a non-interest bearing note requiring payments of P260,000 annually for 6 years.The first payment was made on April 1, 2020.The prevailing rate of interest for a note of this type at the time of issuance was 9.5%.
Required: Prepare all the necessary journal entries for 2019 & 2020
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Accounting Information Systems
Authors: Robert Hurt
2nd Edition
78111056, 978-0078111051
