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Question - Opal Mining sold coal to Petric Electric, receiving a six-month, noninterest-bearing note for $200,000. The fair value of the goods sold to Petric is $192,000. Opal uses a periodic inventory system, and views the financing component of this transaction to be significant.
Required -
1. Prepare the journal entry to record the sale.
2. Compute the effective annual rate of interest.
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