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Seller enters into a sale with repurchase agreement with Buyer. Under the terms of the agreement, the original sale price is $100,000 and two years
Seller enters into a sale with repurchase agreement with Buyer. Under the terms of the agreement, the original sale price is $100,000 and two years later the asset will be repurchased by the original seller for a price of $116,640 (which represents an imputed interest rate of 8%). Under this arrangement, the journal entry for the original transaction will most likely include a:
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Credit to sales revenue
Credit to liability to buyer
. Credit to accounts receivable
Credit to unearned revenue
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