On December 31, 2021, XYZ Co. sold $250,000 of inventory to ABC Company for a three-payment promissory note on December 31 for $140,000 (including interest). The first payment will be made on 31 December 2021. 5% market interest rate applies to this contract:

Should XYZ report gross profit for this sale in December 2021?

Prepare XYZ Co.'s journal entry to record a payment receipt dated December 31, 2023.

Answer rating: 100% (QA)

Yes XYZ should report gross profit for this sale in December 2021 because the sale has been complete... View the full answer