Selkirk Company obtained a $15,000 note receivable from a customer on January 1, 2013. The note, along with
interest at 10%, is due on July 1, 2013. On February 28, 2013, Selkirk discounted the note at Unionville Bank. The bank’s discount rate is 12%. Required: Prepare the journal entries required on February 28, 2013, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.) Record the accrued interest earned. Record the discounting of note receivable.
The best way to approach your question... View the full answer