Shlee SA issued a 4-year, 60,000, zero-interest-bearing note to Garcia Company on January 1, 2022, and received

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Shlee SA issued a 4-year, €60,000, zero-interest-bearing note to Garcia Company on January 1, 2022, and received cash of €60,000. In addition, Shlee agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4-year period. The market rate of interest for similar notes is 12%. Prepare Shlee’s January 1 journal entry.

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Intermediate Accounting IFRS

ISBN: 9781119607519

4th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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