On December $31,2023,$ Pina Co$.$ performed environmental consulting services for Grouper Co$.$ Grouper was short of cash, and Pina Co$.$ agreed to accept a $$110,000$ zero$-$interest$-$bearing note due December $31,2025,$ as payment in full. Grouper is somewhat of a credit risk and typically borrows funds at a rate of $12\%.$ Pina is much more creditworthy and has various lines of credit at $6\%.$

Click here to view factor tables

$($a$)$

Your answer is partially correct.

Prepare the journal entry to record the transaction of December $31,2023,$ for Pina Co$.($Round present value factor calculations to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answers to $2$ deeimal places, e$.$g$.5,275\mathrm{.}25.$ Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Notes Receivable

Discount on Notes Receivable