Problem

Recording discounted note On January 1, Fullmer Co. accepted a $10,000, 60-day, 8% note...

Recording discounted note

On January 1, Fullmer Co. accepted a $10,000, 60-day, 8% note from Olson Inc. given for a purchase of equipment. On January 30, Fullmer discounts the note receivable at First Federal Savings. The bank charges a discount rate of 10%.

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

2. Record the journal entry for the discounted note receivable on January 30.

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Solutions For Problems in Chapter 16