Question

Cash and Receivable.

1) Rugby Panthers company on January 1, 2017 loaned $25,720 to Minot high magicians company. Rugby panthers company accepted a 2 year $30,000 note from Minot high magicians company. Record the entry on January 1, 2017 for the initial transaction, record the adjusting entry on December 31, 2017, record the adjusting entry on December 31, 2018, and the entry on January 1, 2019( The date the note is collected?. You will need to compute the implied interest rate. Record entries only from the point of Rugby Panthers company.

2) Briefly discuss the two methods of recording accounts receivable when cash discounts are invloved.