Question: Preparing Entries and Interest Schedule for Long-Term Note Receivable; Effective Interest Method On April 1 of Year 1, Mountain Company sold merchandise and received a

Preparing Entries and Interest Schedule for Long-Term Note Receivable; Effective Interest Method On April 1 of Year 1, Mountain Company sold merchandise and received a $32,400, three-year, noninterest-bearing note. The market rate is 10%. Mountain Company has a March 31 year-end. Use the effective interest method to amortize any discount.

Required:

Prepare entries for Mountain Company on April 1 of Year 1, and March 31 of Year 2, Year 3, and Year 4.

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