Entries for notes payable Bennett Enterprises issues a $400,000, 90-day, 5% note to Spectrum Industries for merchandise inventory. Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises' entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 1. Notes Receivable x 400,000 Notes Payable 400,000 2. Notes Payable Interest Expense 400,000 5.000 Cash 405,000 Feedback Check My Work 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? Learning Objective 1. 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. Notes Receivable 400,000 Interest Receivable x 400,000 405,000 2. Cash Interest Expensex Accounts Receivable x 5,000 x 400,000 x