XYZ Company has an Accounts Payable of $120,000 from inventory purchased in the previous month on account. Instead of paying off its $120,000 liability when due this month, XYZ Company has worked out a deal with their vendor to convert their current liability into a Long-term Note Payable in which the vendor will earn 2% interest. 

What journal entry is required to convert the liabilities within XYZ Company's records on the date of the deal?

Answer rating: 100% (QA)

Heres the journal entry required to convert the liabilities within XYZ Companys ... View the full answer