Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Grabber Inc. is a retailer. Each Christmas season, Grabber builds up its inventory to meet the needs of Christmas shoppers. A large portion of these Christmas sales are on credit. As a result, Grabber often collects cash from the sales several months after Christmas. Assume that on September 1, 2019, Grabber borrowed $4.2 million from Multinational Bank for working capital purposes and signed an interest-bearing note due in six months. The interest rate was 6 percent per annum payable at maturity. The accounting period ends December 31.

1. Prepare the journal entry to record payment of the note and interest on the maturity date, February 28, 2020.