On January 1, 2017, Oldham Company sold goods to Windall Company in exchange for a 3-year, non-interest-bearing note with a face value of $10,000. If Oldham entered into a separate financing transaction with Windall, an appropriate interest rate would be 8%. Which of the following statements is true about the journal entry that records the transaction when Oldham delivers the goods to Windall on January 1, 2017?Credit Sales Revenue $7,600 Credit Interest Revenue $2,400 Debit Note Receivable for $10,000 Credit Discount on Note Receivable $2,400

Intermediate Accounting: Reporting And Analysis
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Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
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Chapter13: Investments And Long-term Receivables
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On January 1, 2017, Oldham Company sold goods to Windall Company in exchange for a 3-year, non-interest-bearing note with a face value of $10,000. If Oldham entered into a separate financing transaction with Windall, an appropriate interest rate would be 8%. Which of the following statements is true about the journal entry that records the transaction when Oldham delivers the goods to Windall on January 1, 2017?
Credit Sales Revenue $7,600
Credit Interest Revenue $2,400
Debit Note Receivable for $10,000
Credit Discount on Note Receivable $2,400

 

 

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