Entries for discounting notes payable
Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.
a. Journalize Ramsey’s entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
b. Journalize Buckner’s entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
