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Swifty Corp. was experiencing cash flow problems and was unable to pay its $$104,100$ account payable to Ayayai Corp. when it fell due on September $30,2023.$ Ayayai agreed to substitute a one$-$year note for the open account. The following two options were presented to Swifty by Ayayai:

Option $1$: A one$-$year note for $$104,100$ due September $30,2024.$ Interest at a rate of $8\%$ would be payable at maturity.

Option $2$: Aone$-$year non$-$interest$-$bearing note for $$112,428.$ The implied rate of interest is $8\%.$

Assume that Ayayai has a December $31$ year end.

$($a$)$

Assuming Swifty chooses Option $1,$ prepare the entries required on Ayayai's books on September $30,2023,$ December $31,2023,$ and September $30,2024.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the omounts. Record journal entries in the order presented in the problem. Listall debit entries before credit entries.$)$

Date

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Account Titles and Explanation

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