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ABC bought a tractor for $50,000 with a 5% interest rate on credit on 1-1-21. They are making 4 annual payments on this tractor.

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ABC bought a tractor for $50,000 with a 5% interest rate on credit on 1-1-21. They are making 4 annual payments on this tractor. Prepare the journal entry for the purchase and each of the 4 subsequent payments using the unequal payment method.

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