On 1 January 20X1, Kerlan installed a postal sorting system at Ardoise; control was transferred on that date. The cash price is 400,000 and Ardoise will pay 532,400 on 31 December 20X3. Kerlan recognised a receivable of 400,000 on installation; the rate of a separate financing transaction with Ardoise is 10% (case data) and interest is computed on each year's opening balance (teaching assumption). Record the financing entry at 31 December 20X2.
- Cash price
- 400,000
- Amount payable at maturity
- 532,400
- Rate of a separate financing transaction with the customer
- 10 %