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On October 1, 2010, WAH Company received a 9% note from a customer in the amount of P400,000, payable in two equal annual installments every September 31 of each year including interest. WAH Company reporting year ends every December 31, and the company uses reversing entries for interest.
Required:
Problem 1: Journal entries up to December 31, 2011 (indicate the date in the entry)
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Make journal entries (in general journal form) to record the above transactions. Use a 360-day year in making the interest calculations
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