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Toms Company sells shoes. On 1/1/16, the company sold shoes to a local retailer, accepting a $700,000, 3-year, non-interest bearing note, with a 12% discount

Toms Company sells shoes. On 1/1/16, the company sold shoes to a local retailer, accepting a $700,000, 3-year, non-interest bearing note, with a 12% discount rate. Prepare an effective interest amortization table and record the journal entries at date of issuance and end of years 1, 2, and 3.

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