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Frasquita acquired equipment from the manufacturer on 6/30/2024 and gave a noninterest-bearing note in exchange. Frasquita is obligated to pay $550,000 on 4/30/2025 to satisfy
Frasquita acquired equipment from the manufacturer on 6/30/2024 and gave a noninterest-bearing note in exchange. Frasquita is obligated to pay $550,000 on 4/30/2025 to satisfy the obligation in full. If Frasquita accrued interest of $15,000 on the note in its 2024 year-end financial statements, what would the manufacturer record in its 2024 income statement for this transaction? Multiple Choice $15,000 of interest revenue $25,000 of interest revenue $15,000 of interest revenue and $525,000 of sales revenue $550,000 of sales revenue
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