On June 1 Phillips Corporation sold with recourse a note
On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank. The note has a face value of $15,000 and a maturity value (principal plus interest) of $15,400. The discount is calculated to be $385, and the accrued interest income is $100. The recourse liability is estimated to be $1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
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