Problem

Recording discounted note LO3 LO4 On December 1, Greer Co. accepted a $25,000, 60-day...

Recording discounted note LO3 LO4

On December 1, Greer Co. accepted a $25,000, 60-day, 10% note from Olson Inc. for the purchase of

equipment. On December 31, Greer discounts the note receivable at First Federal Savings. The bank

charges a discount rate of 12%.

Required

1. Record the journal entry for receipt of the note on December 1.

2. Record the journal entry for the discounted note receivable on December 31.

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Solutions For Problems in Chapter 16