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 $$39,000$ on March $31,2025.$ The fair value of the merchandise exchanged is $$35,490.$ 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.

Required $1$

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

$1$ im $,2,4$

Record the sale of merchandise.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$June $30,2024,,,],[,,,]]$

$1$ journal entry$-$record the sale of merchandise

$2$ journal entry$-$record interest accrual on december $31$

$3$ journal entry$-$record interest accrual on march $31$

$4$ journal entry$-$record the cash collection