Question
On December 31, 2021, XYZ Co. sold $250,000 of inventory to ABC Company for a three-payment promissory note on December 31 for $140,000 (including interest).
On December 31, 2021, XYZ Co. sold $250,000 of inventory to ABC Company for a three-payment promissory note on December 31 for $140,000 (including interest). The first payment will be made on 31 December 2021. 5% market interest rate applies to this contract:
Should XYZ report gross profit for this sale in December 2021?
Prepare XYZ Co.'s journal entry to record a payment receipt dated December 31, 2023.
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Yes XYZ should report gross profit for this sale in December 2021 because the sale has been complete...
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
