On January 1, 2024, Wendall Company purchases new equipment for $635,000. Wendall is required to make a down payment of $115,000 and issue an installment note for the remaining balance of $520,000. The note requires payments of $70,985.10 every three months, beginning March 31, 2024, over the next two years. The interest rate on the note is 8% annually (or 2% every three months).

Required:

1. Record the purchase of equipment with down payment of $115,000 and the installment note of $520,000 on January 1, 2024.

2. Record the first payment of $70,985.10 on March 31, 2024.