Selkirk Company gets a $15,000 note receivable from a customer on 1st January, 2013. The note, along with interest at 10 percent, is due on 1st July, 2013. On 28th February, 2013, Selkirk discounted the note at Unionville Bank. The bank's discount rate is 12 percent.
Required:
Prepare journal entries required on 28th February, 2013, to accrue interest and to record the discounting for Selkirk. Suppose that the discounting is accounted for as a sale. (If no entry is required for a particular transaction, select "No journal entry required" in first account field.)
Find the accrued interest earned.
Find the discounting of note receivable.