Record the two journal entries that toyota should record

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On 1/1/20 Toyota sells a car for a non-interest bearing note. The car would normally sell for $75,000 in cash, but the customer instead opts to pay a lump sum of $100,000 in two years (this is the only payment). The car costs Toyota $55,000 to build. Assume that Toyota uses a perpetual inventory system and sells directly to the customer.

Record the two journal entries that Toyota should record for the sale (the second journal entry being for Cost of Goods Sold and Inventory). Also what is the gross profit generated on the date of sale.

Reference no: EM132421116

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