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Question 2 (4 points) On 10/1, The ALPHA company purchases a large order of inventory from a supplier. Terms of the sale require ALPHA to
Question 2 (4 points) On 10/1, The ALPHA company purchases a large order of inventory from a supplier. Terms of the sale require ALPHA to sign a non interest bearing note of $121,000 due in two years. The discount rate is estimated to be 10%. Which of the following statements are correct? (select all that apply, i.e. just one or as many as all of them) On 12/31, end of the fiscal year, ALPHA credits a contra-liability account for $21,000 On 10/1, ALPHA debits a balance sheet account for $121,000 On 10/1, ALPHA debits a contra-liability account for $21,000 On 10/1, ALPHA credits a liability account for $121,000
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