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Your company converted an existing account receivable in the amount of $5,000 to a note receivable to allow an extended payment period. The note is

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Your company converted an existing account receivable in the amount of $5,000 to a note receivable to allow an extended payment period. The note is due in one year and includes an annual interest rate of 5% The customer repays the principal at the maturity date. The entry to record the receipt of the principal includes a debit to Multiple Choice Notes Receiveble end credit to Cesh Notes Receivable and credit to Accounts Receiveble. Cash and credit to interest Receivable Cesh and credit to Notes Receiveble

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