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On November 1, Moth Inc. writes Butterfly Corp. a $7,500,5-month, 12% promissory note. On the same date, Butterfly records a $7,875 debit to Notes Receivable,

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On November 1, Moth Inc. writes Butterfly Corp. a $7,500,5-month, 12% promissory note. On the same date, Butterfly records a $7,875 debit to Notes Receivable, a $7,500 credit to cash, and a $375 credit to interest Revenue. In this scenario, Butterfly's revenues will be understated because it improperly included the interest revenue when first recording the note Butterfly's assets will be understated because it improperly included the interest revenue when first recording the note. Butterfly's net income will be overstated because it improperly included the interest revenue when first recording the note. Butterfly's revenues will be accurate because it properly included the interest revenue when first recording the

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