=+Sept.13. Received from Michele Hobson the amount due on her note of July 15.

13. Sold merchandise on account to Rainbow Co., $20,000. The cost of merchandise sold was $11,500.

Oct. 12. Accepted a 60-day, 6% note for $20,000 from Rainbow Co. on account.

Dec. 11. Rainbow Co. dishonored the note dated October 12.