Big Ted Toys sells on account. When a customer account becomes three months old, Big Ted converts the account to a note receivable and immediately discounts the note to a bank. During 2012, Big Ted completed the following transactions:
Apr 29 Sold goods on account to V. Mayer, $3,000.
Dec 1 Received a $3,000, 60-day, 11% note from Mayer in satisfaction of his past-due account receivable.
1 Sold the Mayer note by discounting it to a bank for $2,600.
Requirement
1. Record the transactions in Big Ted’s journal.