Question

Bartho Products sold used equipment with a cost of $15,000 and a carrying amount of $2,500 to Vardy Corp. in exchange for a $5,000, three-year non-interest-bearing note receivable. Although no interest was specified, the market rate for a Joan of that risk would be 9%. Assume that Bartho follows IFRS. Prepare the entries to record
(a) The sale of Bartho's equipment and receipt of the note,
(b) The recognition of interest each year, and
(c) The collection of the note at maturity.


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  • CreatedSeptember 18, 2015
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