1 chen inc accepted a two-year noninterest-bearing note for, Ask an Expert

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1. Chen Inc. accepted a two-year noninterest-bearing note for $605,000 on January 1, 2016. The note was accepted as payment for merchandise with a fair value of $500,000. The effective interest rate is 10%.

The cash collection on December 31, 2017, would be recorded as:

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91748896

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