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On January 1, 20X3, Gaudreau Enterprises sold goods in exchange for a $200,000, fiveyear interest-free note from the purchaser. The note was repayable at $40,000
- On January 1, 20X3, Gaudreau Enterprises sold goods in exchange for a $200,000, fiveyear interest-free note from the purchaser. The note was repayable at $40,000 per annum, with the first payment due on December 31, 20X3. The market rate of interest for similar notes was 6% per annum. Gaudreau Enterprises only records adjusting entries at year end. What amount of interest revenue should Gaudreau Enterprises accrue at its December 31,20X3, year end?
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Financial Accounting
Authors: Michelle L. Hanlon, Robert P. Magee, Glenn M. Pfeiffer, Thomas R. Dyckman
6th Edition
1618533118, 978-1618533111
