Use Case Study Question 8.4 on page 233 of the Collins text to prepare an Accounting Issues Memo that addresses Tractor Company's questions about the amount of revenue to be recorded on the date of the sale to Jim's U-Pick Farm and the subsequent measurement of its receivable. The memo must include the section, "Financial Statement & Disclosure Impacts" which would include journal entries. You do not need to explain the measurement attribute you used to address the 2 questions about initial and subsequent measurement, nor do you need to explain how your approach meets the measurement's objective.

PLEASE I NEED HELP WITHT THE JOURNAL ENTRIES MOSTLY.

Case 8.4:

Dealer Financing On 1/1/X1, Tractor Co. sold a new combine to Jims U-Pick farm. The purchase agreement establishes a base price of $100,000, plus a contractual interest rate of 5%, payable in 48 monthly installments of $2,302.93. Control of the combine transferred to Jim when Jim signed the contract and had the combine delivered that same day. If Jim had obtained separate financing (say, a bank loan) for the purchase, his interest rate would have been 6%. What amount of revenue should Tractor Co. record at the date of sale? What guidance should Tractor Co. apply to the subsequent measurement of its receivable? Consider the measurement attribute used to record Tractor Co.s revenues. How does this approach achieve the

objective of this measurement attribute?

Hint: You might find it useful to use Microsoft Excels formula options: PMT and PV for this example. Excel

walks you through how to input numbers into each formula.