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Exercise 7-26 (Algo) Discounting a note receivable [LO7-8] Selkirk Company obtained a $24,000 note receivable from a customer on January 1, 2021. The note, along with interest at 10%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 12%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) View transaction list Journal entry worksheet 1 2 < Record the accrued interest earned. Note: Enter debits before credits. Date February 28, 2021 Record entry General Journal Clear entry Debit Credit View general journal

Exercise 7-26 (Algo) Discounting a note receivable [LO7-8] Selkirk Company obtained a $24,000 note receivable from a customer on January 1, 2021. The note, along with interest at 10%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 12%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) View transaction list Journal entry worksheet 1 2 < Record the accrued interest earned. Note: Enter debits before credits. Date February 28, 2021 Record entry General Journal Clear entry Debit Credit View general journal

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....
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Exercise 7-26 (Algo) Discounting a note receivable [LO7-8] Selkirk Company obtained a $24,000 note receivable from a customer on January 1, 2021. The note, along with interest at 10%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 12%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) View transaction list Journal entry worksheet 1 2 < Record the accrued interest earned. Note: Enter debits before credits. Date February 28, 2021 Record entry General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:Exercise 7-26 (Algo) Discounting a note receivable [LO7-8] Selkirk Company obtained a $24,000 note receivable from a customer on January 1, 2021. The note, along with interest at 10%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 12%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (Do not round Intermediate calculations. If no entry is required for a transaction/event, select "No Journal entry required" In the first account fleld.) View transaction list Journal entry worksheet 1 2 < Record the accrued interest earned. Note: Enter debits before credits. Date February 28, 2021 Record entry General Journal Clear entry Debit Credit View general journal
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