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On October 1,201, Magnificent Copiers sold inventory costing $380,000 to a customer in exchange for a one-year $500,000 note. The note had an annual stated

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On October 1,201, Magnificent Copiers sold inventory costing $380,000 to a customer in exchange for a one-year $500,000 note. The note had an annual stated rate of 6%. Both the interest and principal are due at the note's maturity. Which of the following should be included in the journal entry or entries to record the sale? Which of the following should Magnificent Copiers include in its journal entry or entries to record the sale of its inventory on credit (a note receivable) to the customer? Dr. Interest receivable 30,000 Cr. Sales revenue 500,000 Cr. Notes receivable 380,000 Dr. Cost of goods sold 470,000 Which of the following should Magnificent Copiers include in its December 31 year-end adjusting entry related to the note it gave to the customer? Dr. Interest revenue 30,000 Cr. Interest revenue 7,500 Dr. Unearned revenue 5,700 Dr. Notes receivable 500,000

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