GSDA is a financing company that has entered into a contract to lend money to a customer today 12/31/2019. The note has a future value of $25,000. The length of the note is 2 years. The customer will make payments of $1,875 1 year from today and 2 years from today. They will also pay $25,000 to GSDA 2 years from today. In exchange for this note GSDA has written the customer a check for $23,501.54 today. The note has a market rate of interest equal to 11%.

Fill in the blanks in each part of the question with the appropriate account name and amount. (5 parts in total for this question!!) Debits (DRs) should always be first, sorted alphabetically if there are multiple debits. Then Credits (CRs), likewise sorted alphabetically if there are multiple credits. The account name must come from the provided list and must be spelled the same.

**ACCOUNT LIST MUST MATCH EXACTLY:

Chart of Accounts:

CASH	NOTES RECEIVEABLE
ACCOUNTS RECEIVEABLE	PREMIUM ON NOTES RECEIVEABLE
ALLOWANCE FOR DOUBTFUL ACCOUNTS	DISCOUNT ON NOTES RECEIVEABLE
ACCOUNTS PAYABLE	INTEREST REVENUE
INTEREST EXPENSE	INTEREST RECEIVEABLE
INTEREST PAYABLE	COST OF GOODS SOLD
BAD DEBT EXPENSE	INVENTORY
NOTES PAYABLE	PURCHASES
PREPAID RENT	LOSS ON INVENTORY LCM ADJUSTMENT
RENT EXPENSE	GAIN/LOSS RECOVERY ON INVENTORY LCM ADJUSTMENT
UNEARNED REVENUE

**PART A: Record the issuance of this note for GSDA

Debits:

Credits:

**PART B: What is the appropriate journal entry to record the receipt of the first payment of $1,875 on 12/31/2020? NOTE: An accrual entry is not needed for this problem.

Debits:

Credits:

PART C: Following the first payment what is the carrying value of this note? Fill in both boxes with the same number! It is the only way to make the problem weight correct.

<<<-------SAME NUMBER---------->>>

PART D: What are the two journal entries needed on the last day of the note 12/31/2021 (to record the receipt of the second payment of $1,875 and the final payment of $25,000).

Journal Entry to receive the second payment of $1,875.

Debits:

Credits:

PART E: Journal Entry to record the receipt of the $25,000

Debit:

Credit: