On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank The note has a face value of $15,000 and a maturity value (principal plus interest) of $15,400 The discount is calculated to be $385, and the accrued interest income is $100 The recourse liability is es...

June 1 Cash 15400 385 15015 Lo ...

On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank.

Question:

On June 1, Phillips sold, with recourse, a note receivable from a customer to a bank. The note has a of $15,000 and a value (principal plus interest) of $15,400. The discount is calculated to be $385, and the accrued interest income is $100. The recourse liability is estimated to be $1,000. Prepare the journal entry of Phillips to record the sale of the note receivable.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...