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On September 1, 2020, Sage Hill Inc. sold goods to Sheffield Corp., a new customer. Before shipping the goods, Sage Hill's credit and collections department

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On September 1, 2020, Sage Hill Inc. sold goods to Sheffield Corp., a new customer. Before shipping the goods, Sage Hill's credit and collections department conducted a procedural credit check and determined that Sheffield is a high credit-risk customer. As a result, Sage Hill did not provide Sheffield with open credit by recording the sale as an account receivable. Instead, Sage Hill required Sheffield to provide a non-interest-bearing promissory note for $35,000 face value, to be repaid in one year. Sheffield has a credit rating that requires it to pay 12% interest on borrowed funds. Sage Hill pays 10% interest on a loan recently obtained from its local bank. Sage Hill has a December 31 year end. The tables in this problem are to be used as a reference for this problem. Click here to view the factor table PRESENT VALUE OF 1. Prepare the entries required on Sage Hill's books to record the sale, annual adjusting entry, and collection of the note's full face value. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit CI

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