On December 31, 2022, Company sold land in exchange for a nine-month, 10% note. The note requires the payment of $200,000 plus interest on September 30, 2023. The companys fiscal year-end is December 31. The 10% rate properly reflects the time value of money for this type of note. On March 31, 2023, Company discounted the note at the Bank of the West (without recourse). The banks discount rate is 12%.

Prepare all required journal entries at March 31, 2023 to recognize interest revenue and the discounting of the note.