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On December 31Company XYZ performed services for Customer A and accepted a $200,000 zero-interest bearing note due in 2 years. Company XYZ has the ability
On December 31Company XYZ performed services for Customer A and accepted a $200,000 zero-interest bearing note due in 2 years. Company XYZ has the ability to borrow money at the bank at 6% but Customer A has some issues and their bank borrowing rate is 10%. Record the following
- Entry at the time XYZ accepts the note
- Entry at the time Customer A pays the debt to Company XYZ.
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