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Coronado Industries signed a three-month, zero-interest-bearing note on November 1.2020 for the purchase of $505700 of inventory. The face value of the note was $516500,

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Coronado Industries signed a three-month, zero-interest-bearing note on November 1.2020 for the purchase of $505700 of inventory. The face value of the note was $516500, Coronado used a "Discount of Note Payable" account to initially record the note. Assuming that the discount will be amortized equally over the 3 -month period and that there was no adjusting entry made for November, the adjusting entry made at December 31,2020 will include a credit to Interest Expense for $7200. debit to Interest Expense for $7200. credit to Discount on Note Payable for $3600. debit to Discount on Note Payable for $3600

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