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Question - White Mountain Company requests that you record journal entries for a note it received in 2017. On April 1, 2017, White Mountain Company sold merchandise for $12,000 and received a $12,000, 3-year, 10% note. The note calls for three equal annual payments to be made beginning March 31, 2018. The market rate for notes with similar risk is 10%.
Required: Provide the necessary journal entries for this note on the following dates:
1. April 1, 2017.
2. December 31, 2017.
3. March 31, 2018.
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