1 Allen Company entered into the following transactions involving short-term Note: Use 360 days a year. Year 1 April 20 Purchased $48,250 of merchandise on credit from King, terms n/30. May 19 Replaced the April 20 account payable to King with a 90-day, 8%, $39,000 note payable along with paying $9,250 in cash. July 8 Borrowed $93,000 cash from MTR Bank by signing a 120-day, 10%, $93,000 note payable. August 17 Paid the amount due on the note to King at the maturity date. November 5 Paid the amount due on the note to MTR Bank at the maturity date. November 28 Borrowed $51,000 cash from Sacramento Bank by signing a 60-day, 8%, $51,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank. Year 2 January 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Requirement General Journal Date 1/27/Year 2 General Ledger Trial Balance Prepare the January 27, Year 2 journal entry to record the payment of the Sacramento note at maturity. Allen Company does NOT prepare reversing entries. Account title Schedule of Calculation of Payables Interest Calculation of Interest Year 2 payment Debit Credit

Allen Company entered into the following Note: Use 360 days a year. Year 1 April 20 Purchased $48,250 of merchandise on credit from King, terms n/30. May 19 Replaced the April 28 account payable to King with a 90 -day, 8%, $39,000 note payable along with paying $9,250 in cash. July 8 Borrowed $93,000 cash from MTR Bank by signing a 120 -day, 10%,$93,000 note payable. August 17 Paid the amount due on the note to King at the maturity date. November 5 Paid the amount due on the note to MTR Bank at the maturity date. November 28 Borrowed $51,000 cash from Sacramento Bank by signing a 60 -day, 8%,$51,000 note payable. December 31 Recorded an adjusting entry for accrued interest on the note to Sacramento Bank. Year 2 January 27 Paid the amount due on the note to Sacramento Bank at the maturity date. Prepare the January 27 , Year 2 journal entry to record the payment of the sacramento note at maturity, Allen company does Nor prepare reversing entries. Prepare the January 27 , Year 2 journal entry to record the payment of the Sacramento note at maturity. Allen does NOT prepare reversing entries