Tarheel Services is holding a Bill receivable from one of its customers and wishes to collect the cash earlier than the maturity date of the bill. The bill is for $1 000 and carries a rate of 4%. Tarheel sells the bill to a bank for $1 080. Please provide the journal entry which Tarheel makes to record this transaction.

Question

Quizplus · Accepted Answer

The Answer of Tarheel Services is holding a Bill receivable from one of its customers and wishes to collect the cash earlier than the maturity date of the bill. The bill is for $1 000 and carries a rate of 4%. Tarheel sells the bill to a bank for $1 080. Please provide the journal entry which Tarheel makes to record this transaction.

Tarheel Services Is Holding a Bill Receivable from One of Its