Question

Grouper sells 3D printer systems. Recently, Grouper provided a special promotion of zero-interest financing for 2 years on any new 3D printer system. Assume that Grouper sells Lyle Cartright a 3D system, receiving a \$5,400 zero. Interest-bearing note on .tanuary 1, 2022. The cost of the 3D printer system is $4,320. Grouper imputes a 6% interest rate on this zero-interest note transaction. Prepare the journal entry to record the sale on January 1,2022. and compute the total amount of revenue to be recognized in 2022.

Answer 1

The journal entry to record the sale on January 1, 2022 is: Debit Accounts Receivable - Lyle Cartright: $5,400, Credit Sales Revenue: $4,320, Credit Unearned Revenue: $1,080. The total amount of revenue to be recognized in 2022 is $3,240.

Step-by-step explanation:

To record the sale of the 3D printer system on January 1, 2022, the journal entry should be:

Debit Accounts Receivable - Lyle Cartright: $5,400

Credit Sales Revenue: $4,320

Credit Unearned Revenue: $1,080

The total amount of revenue to be recognized in 2022 can be calculated by subtracting the unearned revenue from the sales revenue:

$4,320 - $1,080 = $3,240