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On July 1, 2019, Crackle Coffee took out a short-term loan of $25,000 to be repaid in one year. The annual interest rate is 4%

On July 1, 2019, Crackle Coffee took out a short-term loan of $25,000 to be repaid in one year. The annual interest rate is 4% with no interest payments due until the loan is repaid. How much interest should Crackle accrue by year-end December 31, 2019? How should it be recorded in the financial statements?

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