Madison Graphics had the following notes receivable transactions: REQUIRED Record the transactions in a general journal. May

Madison Graphics had the following notes receivable transactions:

REQUIRED Record the transactions in a general journal.

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May 1 20 30 June 20 July 5 Aug. 19 31 Sept. 1 12 Oct. 12 26 Dec. 11 Dec. 27 Sold merchandise on account to L. Carney, $5,600. L. Carney gave a $5,600, 90-day, 12% note to extend time for payment. L. Carney's note is discounted at Commercial Bank at a discount rate of 15%. Received a $2,400, 60-day, 10% note from P. Arnst in payment for sale of merchandise. P. Arnst's note is discounted at Commercial Bank at a discount rate of 12%. P. Arnst's note is dishonored. The bank bills Madison Graphics for the maturity value of the note plus a $30 bank fee. P. Arnst's dishonored note is collected; Arnst pays Madison the maturity value of the note, the $30 bank fee, and interest at 10% on the maturity value plus the bank fee. Sold merchandise on account to B. Faust, $6,400. B. Faust paid $400 and gave a $6,000, 30-day, 12% note to extend time for payment. B. Faust paid $400, plus interest, and gave a new $5,600, 60-day, 14% note to extend time for payment. B. Faust's note is discounted at Commercial Bank at a discount rate of 14%. B. Faust's note is dishonored. The bank bills Madison Graphics for the maturity value of the note plus a $30 bank fee. B. Faust's dishonored note is collected. Faust pays Madison Graphics the maturity value of the note, the $30 bank fee, and interest at 14% on the maturity value plus the bank fee.