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Business, 20.02.2020 23:52 Bryson2148
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:.
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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