The following are selected 2020 transactions of Buffalo Corporation.

Sept. 1		Purchased inventory from Encino Company on account for $46,800. Buffalo records purchases gross and uses a periodic inventory system.
Oct. 1		Issued a $46,800, 12-month, 8% note to Encino in payment of account.
Oct. 1		Borrowed $46,800 from the Shore Bank by signing a 12-month, zero-interest-bearing $49,920 note.

Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the order displayed in the problem statement.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction datechoose a transaction date September 1October 1	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
choose a transaction datechoose a transaction date September 1October 1	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account titleenter an account title	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
October 1	enter an account title to record the transaction on October 1enter an account title to record the transaction on October 1	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record the transaction on October 1enter an account title to record the transaction on October 1	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record the transaction on October 1enter an account title to record the transaction on October 1	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount

Prepare adjusting entries at December 31. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.)

Date	Account Titles and Explanation	Debit	Credit
December 31	enter an account title to record interest on the note on December 31enter an account title to record interest on the note on December 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record interest on the note on December 31enter an account title to record interest on the note on December 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	(To record interest on the note)
December 31	enter an account title to record discount on the note on December 31enter an account title to record discount on the note on December 31	enter a debit amountenter a debit amount	enter a credit amountenter a credit amount
	enter an account title to record discount on the note on December 31enter an account title to record discount on the note on December 31	enter a debit amountenter a debit amount

Compute the total net liability to be reported on the December 31 balance sheet for:

(1)		The interest-bearing note		$enter a dollar amount enter a dollar amount
(2)		The zero-interest-bearing note		$enter a dollar amount enter a dollar amount