Question: U-Build It Warehouse issues a 45-day note for $800,000 to Thomson Home Furnishings Co. for merchandise inventory. Thomson Home Furnishings Co. discounts the note at

U-Build It Warehouse issues a 45-day note for $800,000 to Thomson Home Furnishings Co. for merchandise inventory. Thomson Home Furnishings Co. discounts the note at 7%. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize U-Build It Warehouse's entries to record: (1) the issuance of the note and (2) the payment of the note at maturity. Account Debit Credit 1. Merch. inventory Interest Expense Notes Payable 2.Notes Payable Cash b. Journalize Thomson Home Furnishings Co.'s entries to record: (1) the receipt of the note and (2) the receipt of the payment of the note at maturity. Account Debit Credit 1. Notes Receivables Sales Interest Revenue 2.Cash Notes Receivables

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