Bennett Enterprises issues a $612,000, 30-day, 8%, note to Spectrum Industries for merchandise inventory.

Assume a 360-day year. If required, round your answers to the nearest dollar.If an amount box does not require an entry, leave it blank.

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a. Journalize Bennett Enterprises entries to record:

1. the issuance of the note.
2. the payment of the note at maturity.

1.	CashInterest RevenueInventoryNotes PayableNotes ReceivableInventory	Inventory	Inventory
	CashInterest ExpenseInterest RevenueNotes PayableNotes ReceivableNotes Payable	Notes Payable	Notes Payable
2.	CashInterest PayableInterest RevenueNotes PayableNotes ReceivableNotes Payable	Notes Payable	Notes Payable
	Accounts PayableCashInterest ExpenseInterest RevenueNotes ReceivableInterest Expense	Interest Expense	Interest Expense
	CashInterest ExpenseInterest RevenueNotes PayableNotes ReceivableCash	Cash	Cash

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If you were the borrower how much would you be leaving Spectrum Industries with in proceeds? What does the liability always have to be recorded at?

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b. Journalize Spectrum Industries entries to record:

1. the receipt of the note.
2. the receipt of the payment of the note at maturity.

1.	CashInterest ExpenseInterest RevenueNotes ReceivableSalesNotes Receivable	Notes Receivable	Notes Receivable
	CashInterest ExpenseInterest ReceivableNotes ReceivableSalesSales	Sales	Sales
2.	CashInterest ExpenseInterest RevenueNotes PayableNotes ReceivableCash	Cash	Cash
	CashInterest ExpenseInterest ReceivableNotes PayableNotes ReceivableNotes Receivable	Notes Receivable	Notes Receivable
	Accounts ReceivableCashInterest ExpenseInterest RevenueNotes PayableInterest Revenue	Interest Revenue	Interest Revenue