3. Non-interest bearing note On June 30, 2016, the Esquire Company sold some merchandise to a…

3. Non-interest bearing
note
On June 30, 2016, the Esquire Company sold some merchandise to a
customer for $30,000 and agreed to accept as payment a
noninterest-bearing note with an 8% discount rate requiring the
payment of $30,000 on March 31, 2017. The 8% rate is appropriate in
this situation.
Required:
Prepare journal entries to record the sale of merchandise (omit
any entry that might be required for the cost of the goods sold),
the December 31, 2016 interest accrual, and the March 31, 2017
collection.
What is the effective interest rate on the note?