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Problem - Entries for Discounting Notes Payable
TKR Enterprises issues a 30-day note for $570,000 to Sweeney Industries for merchandise inventory. Sweeney Industries discounts the note at 8%.
a. Journalize TKR Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
b. Journalize Sweeney Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
A municipal bond quoted at 100.45. If the Treasury bonds have a par value of $1,000. What is the price of treasury bonds in dollars
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Based on the information in the video, discuss the primary advantages and disadvantages of applying the direct write-off over the allowance method of writing off accounts.
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