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Aaron Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2014, receiving cash of $47,664.The implicit interest rate is 12%. The
Aaron Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2014, receiving cash of $47,664.The implicit interest rate is 12%.
The note requires a 12/31/14 journal entry that includes
Select one:
a.
A credit to Cash of $5,720
b.
A credit to Discount on Note Payable of $6,834
c.
A credit to Interest Expense of $6,834
d.
A debit to Interest Expense of $5,720
e.
A debit to Discount on Note Payable of $6,834
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