U-Build It Warehouse issues a 45-day note for $800,000 to Thomson Home Furnishings Co. for merchandise inventory. Thomson Home Furnishings Co. discounts the note at 7%.
a. Journalize U-Build It Warehouse's entries to record:
1. The issuance of the note.
2. The payment of the note at maturity.
b. Journalize Thomson Home Furnishings Co.'s entries to record:
1. The receipt of the note.
2. The receipt of the payment of the note at maturity.