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Question
Alan Company purchased $400,000 of ABC Co. 5% bonds at 100 plus accrued interest of $4,500. Alan later sold $250,000 of the bonds at 97. The journal entry for the purchase would include a
a. credit to Interest Receivable for $4,500
b. credit to Interest Revenue for $4,500
c. debit to Interest Receivable for $4,500
d. debit to Interest Revenue for $4,500
Answer
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