Non-interest bearing note for the balance

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On January 1, 2018 Lion electric Inc. sold parts to a customer at a total price of $440,000. Lion electric Inc. received $100,000 cash and a three year 3% non-interest bearing note for the balance. Interest is payable on December 31 every year, the company's year end. The market rate for this note is 6%. The customer paid the note in full on its maturity date.

Give all the entries related to the notes receivable for the first two (2) years only. Lion electric Inc. is a public company and they use the gross method to account for notes receivable. (12 marks). Note: Non-interest bearing means the note does not give interest

Reference no: EM133112148

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