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In testing receivables, we discovered that a portion of the account receivable balance relates to...

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Accounting

In testing receivables, we discovered that a portion of the account receivable balance relates to an installment note which requires fixed payments of $5,509.80 every December 31st. The note bears interest at 4% and when the final payment is received, the note balance will be collected in full. The carrying value of this installment note at the end of Year 10 after the 12/31 payment totaled $20,000. Four payments remain until the note is collected in full. The note should be reported separately from accounts receivable

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