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On January 1st, 2020, the Mary Jane P. Pascua Corporation receices a four year, $50,000, sero interest bearing note in payment of goods sold to
On January 1st, 2020, the Mary Jane P. Pascua Corporation receices a four year, $50,000, sero interest bearing note in payment of goods sold to be paid on December 31st, 2023. the value of the inventory was $20,000. the present value of the note equals the agreed upon sales price of $32, 937.
Required:
1. prepare the journal entry to record the sale on January 1st, 2020.
2. prepare the journal entry to record the interest accrual on Decemver 31st , 2020.
3. Prepare the journal entry to record the payment on December 31st, 2023.
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