Question: On September 1 7 , 2 0 2 2 , AAA Security sold an alarm system to Wondermart in exchange for a 2 - year,

On September

17, 2022,

AAA Security sold an alarm system to Wondermart in exchange for a

2 -

year, $

600, 000

note bearing market interest at

7 % .

Wondermart will repay the note in two equal payments. AAA Security follows IFRS and therefore uses the effective interest method. AAA Security does not use reversing entries.

AAA Security has a December

31

Year end.

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