On November $16,2019,$ Clear Glass Company borrowed $$20,000$ from First American Bank by issuing a $90-$day, non$-$interest$-$bearing note. The bank discounted this note at $12\%$ and remitted the difference to Clear Glass.

Required:

$1.$ Prepare the journal entries of Clear Glass to record the preceding information, the related calendar year$-$end adjusting entry, and payment of the note at maturity.

$2.$ Show how the preceding items would be reported on the December $31,2019,$ balance sheet.

$3.$ Next Level What is Clear Glass Company$$s effective interest rate?