On January 2, 2020, Marin Inc. sells goods to Cullumber Company in exchange for a zero-interest-bearing note with a face value of $8,140, with payment due in 12 months. The fair value of the goods at the date of sale is $7,400 (cost $6,500). Assume that the company chooses to reflect the interest component.

1) Prepare the journal entries to record this transaction on January 2, 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.)

Date	Account Titles and Explanation	Debit	Credit
January 2, 2020
	(To record sales)
January 2, 2020
	(To record cost of goods sold)

2)

How much total revenue should be recognized in 2020?

Revenue recognized in 2020

:

3)

Using Excel or a financial calculator, determine the interest rate that will be earned by Marin. (Round answer to 1 decimal place, e.g. 15.1%.)

Interest rate:

: