Tammy Inc. held a one-year, $3,000, 8 percent interest-bearing note receivable. After holding it for 2...
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Tammy Inc. held a one-year, $3,000, 8 percent interest-bearing note receivable. After holding it for 2 months, the company discounted (sold) it to the bank at 10 percent. REQUIRED: Show the entry to record the sale of the note. Assume interest revenue is not recorded before the note is discounted. (7 MARKS) Tammy Inc. held a one-year, $3,000, 8 percent interest-bearing note receivable. After holding it for 2 months, the company discounted (sold) it to the bank at 10 percent. REQUIRED: Show the entry to record the sale of the note. Assume interest revenue is not recorded before the note is discounted. (7 MARKS)
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The entry to record the sale of the note would be Cash 2900 Discount on Note Receivable 100 Note ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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