On October 12, 2017, Vitablend arranged with a supplier to replace an overdue $10,000 accounts payable by paying $2,500 cash and signing a note for the remainder. The note matured in 90 days and had a 12% interest rate. Show the entries that would be recorded on October 12, December 31 and the date the note matures.

a. Annual salary allowances of $40,000 to Olivia and $ 25,000 to David b. Interest Allowances equal to 10% of each partner's beginning -of-the year capital balance c. Any remaining balance of income or loss to be shared 3:1 2x3=6 4. a) On October 12, 2017, Vitablend arranged with a supplier to replace an overdue $10,000 accounts payable by paying $2,500 cash and signing a note for the remainder. The note matured in 90 days and had a 12% interest rate. Show the entries that would be recorded on October 12, December 31 and the date the note matures. 6 marks 1)