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18: Cool Globe Inc. purchased equipment by paying a $25,000 down payment and signing a noninterest-bearing note requiring the balance to be paid in four
18: Cool Globe Inc. purchased equipment by paying a $25,000 down payment and signing a noninterest-bearing note requiring the balance to be paid in four annual installments of $30,000 on the anniversary date of the contract. Based on Cool Globe's 13% borrowing rate the present value of the noninterest-bearing note is $89,234. Prepare the journal entry to record the above transaction
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