Agrico Inc. accepted an 8-month, 12% (annual rate), $7,000 note from one of its customers on July
Question:
Agrico Inc. accepted an 8-month, 12% (annual rate), $7,000 note from one of its customers on July 15, 2022; interest is payable with the principal at maturity.
Required:
a. Use the horizontal model or write the journal entry to record the interest earned by Agrico during its year ended December 31, 2022.
b. Use the horizontal model or write the journal entry to record collection of the note and interest at maturity.
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a b What accounts are affected and how are they affected Cash is b...View the full answer
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