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Problem #4 Notes Receivable (8 Points) On Jan. 1, 2020, New York Ford sold a 1-ton 4x4 Truck to Northwest Energy in exchange for a
Problem #4 Notes Receivable (8 Points) On Jan. 1, 2020, New York Ford sold a 1-ton 4x4 Truck to Northwest Energy in exchange for a 5-year zero-interest-bearing note with a face amount of $135,000, due Jan. 1, 2025. New York Ford's credit rating makes it eligible to borrow money at 3% interest. Northwest Energy's credit rating makes it eligible to borrow money at 5% interest compounded annually from local banks. New York Ford's inventory records show the trucks original cost at $80,000. Instructions: Record all business transactions for 2020 related to the Sale and the in New York Ford's accounting records, assuming New York Ford has a December 31, 2020 year end. Accounts Debit Credit
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