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Business, 11.02.2020 01:38 arodavoarodavo
Jole Co. lent $10,000 to a major supplier in exchange for a non interest bearing note due in three years and a contract to purchase a fixed amount of merchandise from the supplier at a 10% discount from prevailing market prices over the next three years. The market rate for a note of this type is 10%. On issuing the note, Jole should record
Your
a. Both discount on note receivable and deferred charge.
b. Discount on note receivable only.
c. Deferred charge only.
d. Neither discount on note receivable nor deferred charge.
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Jole Co. lent $10,000 to a major supplier in exchange for a non interest bearing note due in three y...
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