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Hot Dogs sold hot dog ingredients (i.e., buns, sausages) to Ham Campgrounds on 7/1/2020 and agreed to accept a $100,000, 1-year note with a discount
Hot Dogs sold hot dog ingredients (i.e., buns, sausages) to Ham Campgrounds on 7/1/2020 and agreed to accept a $100,000, 1-year note with a discount rate of 10%, due on 6/30/2021. Provide any applicable journal entries for Hot Dogs on 7/1/2020, 12/31/2020, and 6/30/2021. If no entry is required, simply state none.
7/1/2020
12/31/2020
6/30/2021
What is the effective interest rate on this note (rounded to the nearest decimal)?
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