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Rory Company Exchanged an Accounts Receivable of $5,300 for an 8-Month

question 27

Essay

Rory Company exchanged an accounts receivable of $5,300 for an 8-month, 6% note on November 1, 2012.
Record the journal entries on December 31 to record accrued interest and on July 1 to record paying off of the note with interest.


Definitions:

Valid Inference

A logical conclusion that follows the premises stated in a way that is structurally sound and true according to the rules of logic.

Fallacy of Division

A logical fallacy that arises when one assumes that something true of a whole must also be true of its parts.

False Conclusion

A statement or resolution that does not logically follow from the given premises or evidence.

Premises

Statements or propositions that are taken as true and used as the basis for an argument leading to a conclusion.

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