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Business, 16.06.2020 18:57 s1027

Sunland Corporation issued a 4-year, $62,000, zero-interest-bearing note to Garcia Company on January 1, 2020, and received cash of $62,000. In addition, Sunland agreed to sell merchandise to Garcia at an amount less than regular selling price over the 4-year period. The market rate of interest for similar notes is 12%. Required:
a. Prepare Shlee Corporation's January 1 journal entry.
b. How is Shlee accounting for the agreement to sell below selling price accounted for (or is it accounted for)?

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Sunland Corporation issued a 4-year, $62,000, zero-interest-bearing note to Garcia Company on Januar...
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