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On April 1, Joes Company issued a note payable with a maturity of 24 months in the amount of $300,000 for its accounts payable balance

On April 1, Joes Company issued a note payable with a maturity of 24 months in the amount of $300,000 for its accounts payable balance of $300,000 with Santiago Inc. Prepare a journal entry for Joes to record the exchange of the note for the accounts payable balance. The stated rate is 5% and the market rate is 8%.

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