(Answer Question using Option 2 only) - Assuming Indigo chooses option 2, prepare the entries required on Blue's books on September 30, 2023, December 31, 2023, and September 30, 2024.

(For the 4th journal entry, I'm not sure which date to put as well)

Indigo Corp. was experiencing cash flow problems and was unable to pay its $102,000 account payable to Blue Corp. when it fell due on September 30, 2023. Blue agreed to substitute a one-year note for the open account. The following two options were presented to Indigo by Blue: Option 1: A one-year note for $102,000 due September 30,2024 . Interest at a rate of 8% would be payable at maturity. Option 2: A one-year non-interest-bearing note for $110,160. The implied rate of interest is 8%. Assume that Blue has a December 31 year end. \begin{tabular}{|c|c|} \hline Date & Account Titles and Explanation \\ \hline September 30,2023 \end{tabular} December 31, 2023 September 30, 2024 September 30, 2023 (To record interest income) December 31, 2023 September 30, 2024 (To record the collection of the note receivable)