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On June 30, 2021, the Esquire Company sold some merchandise to a customer for $34,000. In payment, Esquire agreed to accept a 6% note requiring

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On June 30, 2021, the Esquire Company sold some merchandise to a customer for $34,000. In payment, Esquire agreed to accept a 6% note requiring the payment of interest and principal on March 31, 2022. The 6% 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, 2021 interest accrual, and the March 31, 2022 collection. (Do not round Intermediate calculations.) 2. If the December 31 adjusting entry for the interest accrual is not prepared, by how much will income before income taxes be over or understated in 2021 and 2022? 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), the December 31, 2021 Interest accrual, and the March 31, 2022 collection. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the sale of merchandise. Note: Enter debits before credits Date General Journal Debit Credit Required 1 Required 2 Prepare journal entries to record the sale of merchandise (omit any entry that might be required for ti December 31, 2021 interest accrual, and the March 31, 2022 collection. (If no entry is required for at journal entry required in the first account field.) View transaction list Journal entry worksheet Record the interest accrual. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2021 Record entry Clear entry View general journal View transaction list Journal entry worksheet

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