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On June 30, 2016, the Esquire Company sold some merchandise to a customer for $20,000 and agreed to accept as payment a noninterest-bearing note with
On June 30, 2016, the Esquire Company sold some merchandise to a customer for $20,000 and agreed to accept as payment a noninterest-bearing note with an 10% discount rate requiring the payment of $20,000 on March 31, 2017. The 10% rate is appropriate in this situation. Required: 1. Prepare journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), the December 31, 2016 interest accrual, and the March 31, 2017 collection. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list X: Import a new list 1 Record the sale of merchandise. 2 Record the interest accrual on December 31. 3 Record the interest accrual on March 31. 4 Record the cash collection. Credit Notejournal entry has been entered Record entry Clear entry View general journal 2. What is the effective interest rate on the note? (Round your intermediate calculations and the final percentage answers to 3 decimal places) Effective interest rate
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