ACCOUNTING FOR NOTES RECEIVABLE. Tucker Products sold a machine to Thomas, Inc., in exchange for a 5-month, $39,000, 11% note receivable. After holding the note for 2 months, Tucker discounted the note (with recourse) at its bank. The bank used a discount rate of 12%. At the end of 5 months, Thomas paid the bank the maturity amount of the note.

REQUIRED:

Prepare the necessary entries for Tucker’s journal to record the transactions described above.