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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.

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.


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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...

Sign up to view the full answer

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