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Gamma Company sold $120,000 of goods and accepted the customer's $120,000 10%, 1-year note receivable in exchange. Assuming 10% approximates the market rate of
Gamma Company sold $120,000 of goods and accepted the customer's $120,000 10%, 1-year note receivable in exchange. Assuming 10% approximates the market rate of return, what would be the journal entry to record the sale? PV$1 (10%, 1) = 0.90909. No journal entry until cash is collected. Debit Accounts Receivable for $109,090.80, Debit Prepaid Interest Revenue for $10,909.02, and Credit Sales Revenue for $120,000 O Debit Notes Receivable for $120,000, credit Discount on Notes Receivable for $10,909.02, and Credit Sales Revenue for $109,090.80 Debit Notes Receivable for $109,090.80 and Credit Sales Revenue for $109,090.80
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