Purchased $38,500 of merchandise on credit from Frier, terms are 1/10, n/30. Tytus uses the perpetual inventory system.
Replaced the April 20 account payable to Frier with a 90-day, $30,000 note bearing 8% annual interest along with paying $8,500 in cash.
Borrowed $66,000 cash from Community Bank by signing a 120-day, 11% interest-bearing note with a face value of $66,000.
Paid the amount due on the note to Frier at the maturity date.
Paid the amount due on the note to Community Bank at the maturity date.
Borrowed $33,000 cash from UMB Bank by signing a 60-day, 6% interest-bearing note with a face value of $33,000.
Recorded an adjusting entry for accrued interest on the note to UMB Bank.
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