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Barney Ltd is entering into a contract to sell Motor vehicle spare parts to Rubble Ltd for $30,000. The agreement allows Rubble Ltd to pay for these goods by three equal instalments of $8,500 and the balance remaining payable in the final instalment, the first instalment being required on 1 October 2022 and the remainder to be paid every 3 months after that. The Motor Vehicle spare parts are delivered to Rubble Ltd on 1 July 2022. Barney Ltd determine that an appropriate discount rate for interest on this transaction is 9% per annum. The agreement stipulates that the interest revenue is due and payable when each repayment is due.
Question 1: Give the journal entries to record the revenue. Note that giving the correct dates of your journal entries is essential.
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