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Problem
Keith Company paid Major Company for merchandise with an $8,000, 60-day, 9% note dated April 1. If Keith Company pays the note at maturity, what entry should Major make at that time?
a.
cash interest income notes receivable
8,720
720
8,000
b.
notes payableinterest expense cash
c.
8,120
120
d.
7,880
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