33. a. Dunn Company accepted a $400,000, 90-day, 12 percent interest-bearing note dated September 1, 2016, from a customer for an accounts receivable balance.

b. On October 1, 2016 Dunn discounted the note, with recourse, to City National Bank at a 10 percent discount rate and received $405,066. The customer paid the note to the bank at maturity.

The maturity value (MV) of the note receivable is __________ $400,000 * 12% * 90/365

The cash proceeds from discounting the note is ________ MV * 10% * 60/365. It is $411,836-$6,770 discount charged by the bank.

(1)	Make the necessary entries to record the above transactions on Dunn Company's books. Round amounts to the nearest dollar.
(2)	What entry would be required on Dunn Company's books at maturity if the customer defaults?