On February 1, 2013, Can Do It Trucks sold a diesel rig to MA Transports for $250,000, receiving a $50,000 down payment and a 12-month, 10% note for the balance. Principal and interest are due at maturity, and the 10% interest rate reflected the market rate of interest at the time of sale. On August 1, 2013, MA Transports discounted the note without recourse at the South Bank at 12% interest.
Required:
Prepare all required journal entries at August 1 to recognize interest revenue and the discounting of the note