On July 1, 2019, Bazaarist Inc. issued a $1000 trade note to a supplier to purchase inventory. The trade note bears a stated interest rate of 8% and matures on December 31, 2019.

Record the journal entry for the repayment of the trade note.

On July 1, 2019, Bazaarist Inc. issued a $1000 trade note to a supplier to purchase inventory. The trade note bears a stated interest rate of 8% and matures on December 31, 2019.

Record the journal entry for the repayment of the trade note.

Cr. Discount on trade note payable -- $40

Dr. Trade note payable -- $1000

Dr. Interest payable -- $40

Cr. Cash -- $1040

Dr. Trade note payable -- $1040

Dr. Cash -- $1080