Transcribed Image Text: Sell-it-Again is a private enterprise that sells used furniture. It sold some merchandise for $120,000 on January 1, 2020. The customer paid

Transcribed Image Text: Sell-it-Again is a private enterprise that sells
used furniture. It sold some merchandise for
$120,000 on January 1, 2020. The customer
paid $35,000 in cash and issued a note for the
remainder. The principal will be due in 2
years, and a 5% interest is due every
December 31st. The customer’s borrowing
rate is 7%.
Required
2) Assume now that Sell-it-Again is a public
company. Prepare all journal entries related to
this sale.
3) Assume that the customer’s borrowing rate
is unknown and that the merchandise cash
price is $110,000 (everything else holds true).
Calculate the imputed interest rate and the
interest revenue to be recorded on December
31, 2020 under IFRS.

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