Problem:
On November 1, 20 I 2 P & P Products entered into an agreement whereby P & P Products accepted a discounted note payable for $2,000,000 (A & A Products received cash). The terms were 0% interest (market rate of interest is 6%) and payable on May I, of 2013 .
Required:
Question: Make all necessary entries on the books of A & A Products for 2012.
Note: Explain all steps comprehensively.