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Calculate the present value of the note receivable

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Question: On January 1, 2018, London Inc. sold $932,000 worth of goods to Sarnia Ltd. It was determined that Sarnia Inc. had poor credit and signed a three year, zero-interest bearing note. London can borrow money at an interest rate of 3.5% Instructions:

A) Calculate the present value of the note receivable. Show your work for part marks.

B) Prepare the following entries for London Inc.

Reference no: EM132762841

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