Current Attempt in Progress

On September $1,2023,$ Tamarisk, Inc. sold goods to Flint Corporation, a new customer. Before shipping the goods, Tamarisk's credit and collections department conducted a credit check and determined that Flint is a high credit$-$risk customer. As a result, Tamarisk did not provide Flint with open credit by recording the sale as an account receivable. Instead, Tamarisk required Flint to provide a non$-$interest$-$bearing promissory note for $\backslash (\backslash$$ $47,600\backslash )$ face value, to be repaid in one year. Flint has a credit rating that requires it to pay $\backslash (12\backslash \%\backslash )$ interest on borrowed funds. Tamarisk pays $10\backslash \%$ interest on a loan recently obtained from its local bank. Tamarisk has a December $31$ year end and follows IFRS.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

On September $1,2023,$ Tamarisk, Inc. sold goods to Flint Corporation, a new customer. Before shipping the goods, Tamarisk's credit and collections department conducted a credit check and determined that Flint is a high credit$-$risk customer. As a result, Tamarisk did not provide Flint with open credit by recording the sale as an account receivable. Instead, Tamarisk required Flint to provide a non$-$interest$-$bearing promissory note for $\backslash (\backslash$$ $47,600\backslash )$ face value, to be repaid in one year. Flint has a credit rating that requires it to pay $\backslash (12\backslash \%\backslash )$ interest on borrowed funds. Tamarisk pays $10\backslash \%$ interest on a loan recently obtained from its local bank. Tamarisk has a December $31$ year end and follows IFRS.

Click here to view the factor table PRESENT VALUE OF $1.$

Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF $1.$

$($a$)$

Your answer is partially correct.

Prepare the entries required on Tamarisk's books to record the sale, annual adjusting entry, and collection of the note's full face value. $($For calculation purposes, use $5$ decimal places as displayed in the factor table provided. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

Credit

Accounts Receivable

Sales Revenue

Interest Receivable

Accounts Receivable

Interest Income

$($To record interest income$)$