Question: Home Center Warehouse issues a 90-day note for $250,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting Co. discounts the note at 5%. a.

Home Center Warehouse issues a 90-day note for $250,000 to Gem Lighting Co. for merchandise inventory. Gem Lighting Co. discounts the note at 5%.

a. Journalize Home Center Warehouse's entries to record:

1. The issuance of the note.

2. The payment of the note at maturity.

b. Journalize Gem Lighting Co.'s entries to record:

1. The receipt of the note.

2. The receipt of the payment of the note at maturity.


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