Sarasota Corp. was experiencing cash flow problems and was unable to pay its $123,000 account payable to MarigoldCorp. when it fell due on September 30, 2020. Marigold agreed to substitute a one-year note for the open account. The following two options were presented to Sarasota by Marigold Corp.:

Option 1:		A one-year note for $123,000 due September 30, 2021. Interest at a rate of 9% would be payable at maturity.
Option 2:		A one-year noninterest-bearing note for $134,070. The implied rate of interest is 9%.

Assume that Marigold Corp. has a December 31 year end.

Assuming Sarasota Corp. chooses Option 1, prepare the entries required on Marigold Corps books on September 30, 2020, December 31, 2020, and September 30, 2021. (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 amounts. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit eTextbook and Media List of Accounts Assuming Sarasota Corp. chooses Option 2, prepare the entries required on Marigold Corp.s books on September 30, 2020, December 31, 2020, and September 30, 2021. (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 amounts. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit (To record interest income) (To record the collection of the note receivable) e Textbook and Media List of Accounts