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Question - Neville Ltd enters into a contract to sell boat products to Patton Ltd for $300,000. The agreements allows Patton Ltd to pay for these goods by four equal instalments, the first instalment being required on deliver and the remained to be paid by equal instalments every 6 months. The boat products are delivered to Patton Ltd on 1 January 2020. Neville Ltd determines that an appropriate discount rate for transaction is 12% per annum.
Required - Prepare the journal entries by Neville Ltd to record these transactions on:
1) 1 January 2020
2) 30 June 2020
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