On February 1, 2016, Hesston manufacturing sold a piece of machinery to Kansas Farm Coop for $250,000, receiving a $50,000 down payment & a 12-month, 10% note for balance. Principal and interest are due at maturity, and the 10% interest rate reflected the market rate of interest at the time of sale. On September 1, 2016, Hesston Manufacturing discounted the note without recourse at the First Courtney Bank of Wichita at 12% interest. Prepare all the entries to record the accrual of interest and proceeds from discounting the note. Round all value to the nearest dollar if necessary.

A. Entry to accrue interest.

B. Entry to record receipt of proceeds of the note.