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Tarheel Services Is Holding a Bill Receivable from One of Its

Question 38

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Tarheel Services is holding a Bill receivable from one of its customers and wishes to collect the cash earlier than the maturity date of the bill. The bill is for $1 000 and carries a rate of 4%. Tarheel sells the bill to a bank for $950. Please provide the journal entry which Tarheel makes to record this transaction. Tarheel Services is holding a Bill receivable from one of its customers and wishes to collect the cash earlier than the maturity date of the bill. The bill is for $1 000 and carries a rate of 4%. Tarheel sells the bill to a bank for $950. Please provide the journal entry which Tarheel makes to record this transaction.

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