Cottage Canoes holds a ($ 40,000,10) percent, 120 -day notes receivable from Painter's Hall. Prior to maturity,

Question:

Cottage Canoes holds a $\$ 40,000,10$ percent, 120 -day notes receivable from Painter's Hall. Prior to maturity, Cottage Canoe discounts the note and sells it for proceeds of $\$ 41,000$. The journal entry to record the discounting of the note would include

a. A debit to notes receivable of $\$ 40,000$

b. A credit to notes receivable of $\$ 41,000$

c. A debit to interest expense of $\$ 1,000$

d. A credit to interest revenue of $\$ 1,000$

Fantastic news! We've Found the answer you've been seeking!