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If a customer defaults (doesn't pay) on a $20,000 Accounts Receivable and Levine decides to replace it with a 16 month 6% Note on 8/31/2025:
If a customer defaults (doesn't pay) on a $20,000 Accounts Receivable and Levine decides to replace it with a 16 month 6% Note on 8/31/2025:
Show the entry if the customer dishonors (doesn't pay) the Note on 12/31/26.
Note: Levine uses a banker's rule for the year (360 days). Round ONLY your final answer to the nearest dollar.
Hint: Consider the adjusting entry on 12/31/2025.
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