Preakness Wholesale Grocery engaged in the following transactions during May: May 3 Purchased office supplies for cash, $300. 7 Purchased inventory on credit terms of 3/10 net eom. $2.000. 8 Returned half the inventory purchased on May 7. It was not the inventory ordered. 10 Sold goods for cash, $450 (cost, $250). 13 Sold inventory on credit terms of 2/15 n/45. $3,900 (cost. $1,800). 16 Paid the amount owed on account from the purchase of May 7. less the discount and the return. 17 Receive defective inventory as a sales return from May 13 sale. $900. Preakness's cost of the inventory received was $600. 18 Purchased inventory of $4,000 on account. Payment terms were 2/10 net 30. 26 Borrowed $3,920 from the bank to take advantage of the discount offered on the May 18 purchase. Signed a note payable to the bank for this amount. 28 Received cash in full settlement of the account from the customer who purchased inventory on May 13, less the discount and the return. 29 Purchased inventory for cash. $2.000. plus freight charges of $160. Required 1. Journalize the preceding transactions on the books of Preakness Wholesale Grocery. 2. The note payable signed on May 26 requires Preakness to pay $30 interest expense. Was the decision to borrow funds in order to take advantage of the cash discount wise or unwise? Support your answer by comparing the discount to the interest paid.