Roberta Wagner owns Wagner Books. At the end of each month, Wagner Books borrows money from a bank and uses the proceeds to pay all of its outstanding accounts payable. The business signs a 15-day, 12.5% note payable for each loan. Each month to date, Wagner Books has been able to pay the notes payable when due. Mrs. Wagner uses this procedure to maintain good credit ratings with vendors. Is her reasoning sound? Explain your answer.