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On January 1, 2018 Tesla Inc. sold parts to a customer at a total price of $400,000. Tesla Inc. received $100,000 cash and a three

On January 1, 2018 Tesla Inc. sold parts to a customer at a total price of $400,000. Tesla Inc. received $100,000 cash and a three year non-interest bearing note for the balance. Interest is payable on December 31 every year, the company's year end. The market rate for this note is 3%. The customer paid the note in full on its maturity date.

Give all the entries related to the notes receivable for the first two (2) years only. Tesla Inc. is a public company and they use the gross method to account for notes receivable. (12 marks)

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