What is the result of the following transaction for Company A? Company A’s customer is unable to pay for a previous credit sale in accordance with Company A’s 90-day payment terms. The customer makes a promissory note to Company A that extends payment over a 24-month term including 5% interest.

1. No result because the customer didn’t pay.
2. Accounts receivable increases because of the interest.
3. A note receivable is recorded in non-current assets.
4. Company A records the loan as a liability

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