Question

Dharma sold a piece of equipment at the beginning of Year 1, receiving a $ 10,000, two- year 1% note. Interest is paid at the end of each year. Market interest rates are in the range of 10%.

Required:
1. Calculate the present value of the note receivable.
2. Prepare entries for the sale, and cash collection each year for two years.



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  • CreatedFebruary 17, 2015
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