Record the interest accrual on December 31. Record the interest accrual on March 31. Record the cash collection.

12 Exercise 7-15 Noninterest-bearing note receivable L07-77 On June 30, 2018, 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, 2019. The 10% rate is appropriate in this situation. Esquire views the financing component of this contract as significant. 20 oints Required 1. Prepare journal entries to record the sale of merchandise i any entry that might be required for the cost of the goods sold), the December 31, 2018 interest accrual, and the March 31, 2019 collection. 2. What is the effective interest rate on the note? eBook Print Complete this question by entering your answers in the tabs below References Required1Required 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, 2018 interest accrual, and the March 31, 2019 collection. (If no entry is required fora transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 Record the sale of merchandise Note: Enter debits before credits. Date General Journal Debit Credit June 30, 2018