Sonic Inc. received from a customer a $4,500, 9% interest-bearing note that will mature in...
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Sonic Inc. received from a customer a $4,500, 9% interest-bearing note that will mature in three months. Two months later, Sonic Inc. discounted the note to the bank at a charge of 12%. Provide the journal entries made by Sonic Inc. to (1) accrue interest to the date the note was discounted and (2) record the discounting of the note receivable.
1. Interest receivable 68(debit)
Interest Revenue 68 (credit)
to record interest on note,
2. Cash ????
Discount on Note Receivable ?????
Interest Receivable 68 (Credit)
Note Receivable 4500 (Credit)
Only looking for what is italicized. Anything in bold is confirmed correct
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