Prepare the journal entry(ies)

Doyle Games is a local game company that needed some new computers and virtual reality studio equipment. In January, All Starr entered into an agreement with Doyle Games, selling it $80,000 in equipment but agreeing not to collect for three years. Doyle Games is expecting a grant from the government that will be paid in three years’ time. All Starr would normally charge interest of 8% but has agreed to waive interest for this contract. The controller included the balance in accounts receivable at $80,000.

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Account Name Equipment Accounts Receivable To record reversal ... View the full answer