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On January 1, 2020, ABC sold merchandise to Auto Merchandising in exchange for a non- interest-bearing note requiring 10 annual payments of P100,000. Auto
On January 1, 2020, ABC sold merchandise to Auto Merchandising in exchange for a non- interest-bearing note requiring 10 annual payments of P100,000. Auto Merchandising made the first payment on December 31, 2020. The prevailing market interest rate for similar notes is 8%. How much is the Interest income recognized during 2021? How much is the value of notes receivable as of December 31, 2021?
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Fraud Examination
Authors: W. Steve Albrecht, Conan C. Albrecht, Chad O. Albrecht, Mark F. Zimbelman
3rd edition
324560842, 978-0324560848
