Exercise $7-20($Static$)$ 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 $$30,000$ on March $31,2025.$ The fair value of the merchandise exchanged is $$28,200.$ 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?

Complete this question by entering your answers in the tabs below.

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.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round

intermediate calculations.

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Journal entry worksheet

$\backslash$table$[[1,2,3,4]]$

Record the sale of merchandise.