On January 1, 2016, Matanuska Transport sold four school buses to the Knik School District. In exchange for the buses, Matanuska received a note requiring payment of $525,000 by Knik on December 31, 2018. The effective interest rate is 6%.

Question

Journal entries for Matanuska for 2016 would include:

		a debit to Discount on Notes Receivable of $84,200
		a credit to Sales Revenue of $525,000
		a credit to Discount on Notes Receivable of $84,200
		a credit to Notes Receivable of $525,000