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Extra Credit: 4 points possible Sometimes, a customer can't honor their A/R right now, but...

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Accounting

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Extra Credit: 4 points possible Sometimes, a customer can't honor their A/R right now, but plans to pay us in the future, so we change their Account Receivable into a Note Receivable. Assume that on 12/1 we agree to change Debtor's $100,000 A/R into a 3-month, 6% Note Receivable. On 12/31 accrue for Interest Receivable. Assume that Debtor pays us on 2/28. Account Dr Cr. Date 12/1 12/31 2/28

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