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2.)Sloan Company borrowed $8,000 on a line of credit on December 1, 2020.Simple interest of 12% will be charged and no payment is required for

2.)Sloan Company borrowed $8,000 on a line of credit on December 1, 2020.Simple interest of 12% will be charged and no payment is required for 60 days.On December 31 the following adjusting entry was made:

Interest Expense80

Interest Payable80

No reversing entry was prepared or posted.Sloan received a minimum payment bill from the bank for $160 due on January 30, 2021, which represents only an interest charge.Sloan makes a $500 payment on January 30.Enter the January 30 journal entry below:

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