Exercise $7-20($Algo$)$ Noninterest$-$bearing notes receivable $[$LO$7-7]$

On June $30,2024,$ the Esquire Company sold merchandise to a customer and accepted a noninterest$-$bearing note in exchange. The note requires payment of $$28,000$ on March $31,2025.$ The fair value of the merchandise exchanged is $$26,530.$ Esquire views the financing component of this contract as significant.

Required:

Prepare journal entries to record the sale of merchandise $($omit any entry that might be required for the cost of the goods sold$),$ any December $31,2024$ interest accrual, and the March $31,2025$ collection.

What is the effective interest rate on the note?