P8.8A (LO 3, 4) Tardif Corporation adjusts its books monthly. On September 30, 2021, notes receivable include the following: Issue Date Mar. 31, 2021 May 31, 2021 Aug. 31, 2021 Sept. 30, 2021 Maker Principal Interest Term RES Inc. Ihara Ltd. Dragon Limited MGH Corp. $17,000 6% 17,500 4% 6,000 7% 20,500 7 months 18 months 2 months 5% 16 months Interest is due at maturity for the RES and Dragon notes. Interest is due on the first day of the month for the Ihara and MGH notes. At September 30, the balance in the Allowance for Doubtful Notes account is nil. In October, the following selected transactions were completed. Oct. 1 Received the interest due from Ihara. 31 Received notice that Dragon was unable to pay its note as scheduled. It expects to be able to pay in the future. 31 The RES note matured and was received in full. 31 Accrued interest on the Ihara and MGH notes. 31 Analyzed the remaining notes for collectibility. Estimated that $17,500 of notes may not be collectible in the future because of significant labour issues currently being experienced by Ihara. Instructions a. Calculate the balance in the Interest Receivable and Notes Receivable accounts at September 30, 2021. b. Record the October transactions. C. 1. Prepare T accounts for the Interest Receivable, Notes Receivable, and Allowance for Doubtful Notes accounts. 2. Enter the opening balances. 3. Post the entries recorded in part (b). 4. Determine the ending balances. d. Show the statement of financial position presentation of the receivables accounts at October 31.