A company held a one-year, $3,000, 8 percent interest-bearing note receivable. After holding it for 2 months, the company discounted (sold) it to the bank at 10 percent. Give the entry to record the sale of the note. Assume interest revenue is not recorded before the note is discounted. $\begin{array} { | l | l | l | l | }
\hline \text { Cash } & 2,970 & & \
\hline \text { Interest Expense } & & 30 & \
\hline \text { Note receivable } & & & 3,000 \
\hline
\end{array}$

Question

A company held a one-year, $3,000, 8 percent interest-bearing note receivable. After holding it for 2 months, the company discounted (sold) it to the bank at 10 percent. Give the entry to record the sale of the note. Assume interest revenue is not recorded before the note is discounted. $\begin{array} { | l | l | l | l | } 
\hline \text { Cash } & 2,970 & & \
\hline \text { Interest Expense } & & 30 & \
\hline \text { Note receivable } & & & 3,000 \
\hline
\end{array}$

Quizplus · Accepted Answer

The Answer of A company held a one-year, $3,000, 8 percent interest-bearing note receivable. After holding it for 2 months, the company discounted (sold) it to the bank at 10 percent. Give the entry to record the sale of the note. Assume interest revenue is not recorded before the note is discounted. $\begin{array} { | l | l | l | l | } 
\hline \text { Cash } & 2,970 & & \
\hline \text { Interest Expense } & & 30 & \
\hline \text { Note receivable } & & & 3,000 \
\hline
\end{array}$

A Company Held a One-Year, $3,000, 8 Percent Interest-Bearing Note