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NOTES RECIEVABLE
On November 1, 2014, Company N accepted a $10,000, 4 percent, 90 day note from a customer for $10,000 in sales. Interest is payable to Company N at retirement on January 1, 2015. Prepare the journal entries for the following activity on the books of Company N:
A. Acceptance of the note and recognition of sale on 11/1/14
B. Adjusting journal entry at 12/31/14 (use months for calculation).
C. Journal entry for receipt of payment from the customer to pay off the note and related interest on January 31, 2015. For this payment, note whether you are assuming that Company N did or did not, prepare reversing journal entries at the beginning of 2015.
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