How to record the discounted note, Accounting Basics

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How to record the discounted note

Response to the following problem:

On June 1, Phillips Corporation discounts a $15,000 note from a customer at its bank. The note has a maturity value of $15,400. The discount is $385. The accrued interest revenue is $100. Prepare the journal entry of Phillips Corporation to record the discounted note.

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Accounting Basics: How to record the discounted note

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