Question: Khajepour Corporation issued a 140 000 four year zero interest bearing note to Saccomanno
Khajepour Corporation issued a $140,000, four-year, zero-interest-bearing note to Saccomanno Corp. on January 1, 2011, and received $140,000 cash. In addition, the company agreed to sell merchandise to Saccomanno for an amount less than the regular selling price over the four-year period. The market interest rate for similar notes is 8%. Prepare Khajepour’s January 1 journal entry.
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