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Suppose that the company from previous exercise number 4 received the full sum of $200,000 on January 1, 2019 and agreed to pay off the
Suppose that the company from previous exercise number 4 received the full sum of $200,000 on January 1, 2019 and agreed to pay off the loan by making three equal annual payments (January 1, 2020, 2021 and 2022) based on a rate of 11.5% interest. Prepare the journal entry to record the second of the three annual payments.
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