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On May 2, Tamarisk, Inc. lends $9,600 to Chang. Inc., issuing a 6-month, 7% note. At the maturity date, November 2 , Chang indicates that

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On May 2, Tamarisk, Inc. lends $9,600 to Chang. Inc., issuing a 6-month, 7% note. At the maturity date, November 2 , Chang indicates that it cannot pay. (a) Prepare the entry to record the issuance of the note. (Credit account titles are automatically indented when amount is entered. Do not indent manually) (b) Prepare the entry to record the dishonor of the note, assuming that Tamarisk, Inc. expects collection will occur. (Credit account titles are outomatically indented when amount is entered. Do not indent manually.) Prepare the entry to record the dishonor of the note, assuming that Tamarisk, Inc. does not expect collection in the future. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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