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On October 1, Year 1. a company sold services to a customer and accepted a note in exchange with a $120,000 face amount and an

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On October 1, Year 1. a company sold services to a customer and accepted a note in exchange with a $120,000 face amount and an interest rate of 10%. The note requires that both the principal and interest be paid at the maturity date, December 1, Year 2 The company's accounting period is the calendar year. What adjusting entry (related to this note) will be required at December 31, Year 1 on the company's books? A Interest receivable $3,000 Deferred interest income $3,000 OB Interest income Interest receivable $3,000 $3,000 OC Deferred interest income Interest receivable $3,000 $3,000 D. $3,000 Interest receivable Interest income $3,000

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