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Equipment costing $ 3 0 0 , 0 0 0 is purchased by paying $ 8 0 , 0 0 0 cash and signing a

Equipment costing $300,000 is purchased by paying $80,000 cash and signing a note for the remainder. The journal entry to record this transaction should include a
debit to Notes Receivable for $120,000.
debit to Notes Payable for $120,000.
credit to Cash for $80,000.
credit to Equipment for $300,000.
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