Sell-it-Again is a private enterprise that sells used furniture. It sold some merchandise for $120,000 on January 1, 2020. The customer paid $35,000 in cash and issued a note for the remainder. The principal will be due in 2 years, and a 5% interest is due every December 31 . The customers borrowing rate is 7%.

Required-

1. 1) Assuming Sell-it-Again chose to use the straight-line method to account for interest revenue, prepare all the journal entries related to this sale.

2. 2) Assume now that Sell-it-Again is a public company. Prepare all journal entries related to this sale.

3. 3) Assume that the customers borrowing rate is unknown and that the merchandise cash price is $110,000 (everything else holds true). Calculate the imputed interest rate and the interest revenue to be recorded on December 31, 2020 under IFRS.