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Chen inc accepted a two-year noninterest-bearing note for

Question - 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%.

1. What is the correct entry to record the note?

2. The entry to record interest on December 31, 2016 would be?

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Accounting Basics: Chen inc accepted a two-year noninterest-bearing note for

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Accounting Basics: Chen inc accepted a two-year noninterest-bearing note for

Reference No:- TGS02890693

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