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Recording Purchase of Equipment through Debt total of 20 months. The contract calls for no interest, yet the prevailing interest rate is 12% on similar

image text in transcribed Recording Purchase of Equipment through Debt total of 20 months. The contract calls for no interest, yet the prevailing interest rate is 12% on similar transactions. a. Record the entry required for the purchase of this equipment. b. Record the entry to recognize interest expense, one month after this purchase. Ignore the cash payment part of the transaction. - Note: Round your answers to the nearest whole number

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