Problem:
On November 1, 2012 P&P Products entered into an agreement whereby P&P product 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 1, of 2013.
Required:
Question: Make all necessary entries on the books of any products for 2012
Note: Please provide reasons to support your answer.