Problem

Recording discounted note LO3 LO4 On July 1, Whyte Co. accepted a $20,000, 90-day, 12...

Recording discounted note LO3 LO4

On July 1, Whyte Co. accepted a $20,000, 90-day, 12% note from Olson Inc. for the purchase of equipment.

On July 31, Whyte discounts the note receivable at First Federal Savings. The bank charges a discount

rate of 15%.

Required

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

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

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Solutions For Problems in Chapter 16