On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its

Question:

On February 15, Barbour Industries buys $800,000 of inventory on credit. On March 31, Barbour approaches its supplier because it cannot pay the $800,000. The supplier agrees to roll the amount into a note due on September 30 with 10 percent interest.

Required:
Prepare the necessary journal entries from February 15 through payment on September 30.