What would be the recurring journal entry on december

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Question - Furniture Co sells merchandise for $88,000 on January 1, 2021. The customer paid $20,000 cash and issued a note for the remainder. The principal will be due in 3 year and 4% interest is due every December 31st. The customer's borrowing rate is 6%.

Required -

a) Assuming Furniture Co is a public corporation prepare journal entries for 2021 and 2022.

b) Assuming Furniture Co is a private corporation, what would be the recurring journal entry on December 31st?

Reference no: EM133178011

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