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The Holtby Company purchased equipment from the Fleury Company in exchange for a $6,000 notes payable on September 1, 20x1. The note is to paid in 90 days with an interest rate of 10%. Assume a 360-day year.
Problem a) Record the journal entry on September 1, 20x1.
Problem b) Record the journal entry at the time of payment (assume the note is paid in full on the appropriate date).
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