Exercise 7-26 (Algo) Discounting a note receivable [LO7-8] Selkirk Company obtained a $36,000 note receivable...
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Accounting
Exercise 7-26 (Algo) Discounting a note receivable [LO7-8]
Selkirk Company obtained a $36,000 note receivable from a customer on January 1, 2021. The note, along with interest at 10%, is due on July 1, 2021. On February 28, 2021, Selkirk discounted the note at Unionville Bank. The banks discount rate is 12%. Required: Prepare the journal entries required on February 28, 2021, to accrue interest and to record the discounting for Selkirk. Assume that the discounting is accounted for as a sale. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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