On June 30, 2021, the Esquire Company sold merchandise to a customer and accepted a noninterest bearing note in exchange the note requires payment of $20,000 on March 31, 2022 The fair value of the merchandise exchanged s $18.500. Esquire Wews the financing component of this contract as significant. 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) any December 31, 2021 interest accrual, and the March 31, 2022 collection 2. What is the effective interest rate on the note? 20:09 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Journal entries to record the sale of merchandise (omit any entry that might be required for the cost of the goods sold), any December 31, 2021 interest accrual, and the March 31, 2022 collection. (if no entry is required for a transaction/event, seleco journal entry required in the first account field. Do not round intermediate calculations View transaction list Journal entry worksheet Record the sale of merchandise Toter Entert before credits De June 30 2021 Delt 20.000 Geralnoma Notes receivable Discount on notes receivable Sales revenue 1500 18500 Next > Well 2 - Fall 2020 Sud Mountain High Ice Cream Company transferred $74,000 of accounts receivable to the Prudental Bank. The transfer was made with recourse Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,400). Mountain High anticipates a $4.400 recourse obligation. The bank charges a 2% fee (2% of $74000), and requires that amount to be paid at the start of the factoring arrangement Required: Prepare the journal entry to record the transfer on the books of Mountain High assuming that the sale criteria are met. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journant entry worksheet No Event Debel Credit General Journal Cash Loss on sale of receivables Receivable from factor Accounts receivable 66,600 2.480 4.920 74.000