Nov. 1 Supported by the credit agreement, a client issued (signed) $20 million of commercial paper on a 9-month note to Metro. Interest was discounted at issuance at a 6% discount rate. Dec. 31 Recorded any necessary adjusting entry(s). 2023 Aug. 1 Received the commercial paper at maturity.

Required: Prepare the appropriate journal entries through the maturity for Metro Bank only (not for the borrower).

Explain how discount on notes receivables is being 861244