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Question 3 of 3 -/1 E Golden Ltd, sells merchandise on April 1, 2020, to Red River Enterprises in return for a 12-month, 10%, $9,600
Question 3 of 3 -/1 E Golden Ltd, sells merchandise on April 1, 2020, to Red River Enterprises in return for a 12-month, 10%, $9,600 note, with interest duc at maturity. The company uses a perpetual inventory system and the cost of the inventory sold was $5,760. Golden has a December 31 year end and adjusts its accounts annually. Prepare the journal entries that Golden will record with regard to this note from April 1, 2020, until the note matures on March 31, 2021. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit (To record sales) (To record cost of merchandise sold)
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