the company records adjusting entries only at year-end. there were no other note receivable outstanding during 2013.
Requried:
1. Determine the rate used to discount the non interest-bearing note.
2. Determine the explicit interest rate on Note 2.
3. what is the amount of interest revenue that appears in the company's 2013 income statement related to these notes?
Note 3 $200,000 face value non interest-bearing note date 9/30/13, due 3/13/14. Note was issued in exchange for merchandise.