On 10/1, The ALPHA company purchases a large order of inventory from a supplier. Terms of the sale require ALPHA to sign a non interest bearing note of $121,000 due in two years. The discount rate is estimated to be 10%.

Which of the following statements are correct?

Question 2 options:

	On 12/31, end of the fiscal year, ALPHA credits a contra-liability account for $21,000
	On 10/1, ALPHA credits a liability account for $121,000
	On 10/1, ALPHA debits a contra-liability account for $21,000
	On 10/1, ALPHA debits a balance sheet account for $121,000