Home Center Warehouse issues a 90 -day note for ($ 250,000) to Gem Lighting Co. for merchandise

Question:

Home Center Warehouse issues a 90 -day note for $\$ 250,000$ to Gem Lighting Co. for merchandise inventory. Gem Lighting Co. discounts the note at $5 \%$.

a. Journalize Home Center Warehouse's entries to record:

1. the issuance of the note.

2. the payment of the note at maturity.

b. Journalize Gem Lighting Co.'s entries to record:

1. the receipt of the note.

2. the receipt of the payment of the note at maturity.

objs. $2,3,4$

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