Bennett Enterprises issues a $600,000, 120-day, 4% note to Spectrum Industries for merchandise inventory.

Assume a 360 days in a year. If an amount box does not require an entry, leave it blank.

Question Content Area

a. Journalize Bennett Enterprises entries to record:

the issuance of the note.

the payment of the note at maturity.

1.	CashInterest RevenueInventoryNotes PayableNotes ReceivableInventory	Inventory	Inventory
	CashInterest ExpenseInterest RevenueNotes PayableNotes ReceivableNotes Payable	Notes Payable	Notes Payable
2.	CashInterest PayableInterest RevenueNotes PayableNotes ReceivableNotes Payable	Notes Payable	Notes Payable
	Accounts PayableCashInterest ExpenseInterest RevenueNotes ReceivableInterest Expense	Interest Expense	Interest Expense
	CashInterest ExpenseInterest RevenueNotes PayableNotes ReceivableCash

b. Journalize Spectrum Industries entries to record:

the receipt of the note.

the receipt of the payment of the note at maturity.