Entries for notes payable

Bennett Enterprises issues a $$744,000,45-$day, $6\%,$ note to Spectrum Industries for merchandise inventory.

Assume a $360-$day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.

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a$.$ Journalize Bennett Enterprises$$ entries to record:

the issuance of the note.

the payment of the note at maturity.

$1.$

Inventory

$744,000$

Notes Payable

$744,000$

$2.$

Notes Payable

$744,000$

Interest Expense

$5,940$

Cash

$744,000$

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If you were the borrower how much would you be leaving Spectrum Industries with in proceeds? What does the liability always have to be recorded at$?$

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b$.$ Journalize Spectrum Industries$$ entries to record:

the receipt of the note.

the receipt of the payment of the note at maturity.

$1.$

Notes Receivable

$744,000$

Sales

$744,000$

$2.$

Cash

$749,940$

Notes Receivable

$744,000$

Interest Revenue

$5,940$