This is easily achieved with CTE that numbers the rows and then you can filter on rowno = 1:

; WITH numbering AS (

SELECT RecID, DateEntered, Status,

row_number() OVER(PARTITION BY RecID ORDER BY DateEntered DESC) AS rowno

FROM #Temp1

)

SELECT RecID, DateEntered, Status

FROM numbering

WHERE rowno = 1

AND Status <> 'C'