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On November 16, 2016, Eric's Cycle Shop settled a past due account with Road Trek. Eric's made a $2,000 payment and signed a $16,000, 90-day,
On November 16, 2016, Eric's Cycle Shop settled a past due account with Road Trek. Eric's made a $2,000 payment and signed a $16,000, 90-day, 6% note payable to cover the balance. a) What is the maturity date of the note? b) What is the total amount of the interest due at maturity? c) Record the entry that Eric's Cycle Shop makes when the note is issued d) Record the year end adjusting entry that Eric's Cycle Shop makes for this outstanding note. e) Record the payment of the note Eric's Cycle Shop at maturity
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