Described below are certain transactions of Nash Corporation. The company uses the periodic inventory system. 1. 2. On February 2, the corporation purchased goods from Martin Company for $73,500 subject to cash discount terms of 2/10,n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. On April 1, the corporation bought a truck for $55,000 from General Motors Company, paying $3,000 in cash and signing a one-year, 12% note for the balance of the purchase price. On May 1, the corporation borrowed $86,000 from Chicago National Bank by signing a $94,640 zero-interest-bearing note due one year from May 1. On August 1, the board of directors declared a $288,300 cash dividend that was payable on September 10 to stockholders of record on August 31. 3. 4. Date Account Titles and Explanation Debit Cred February 2 Purchases Accounts Payable February 26 Accounts Payable Purchase Discounts Lost Cash April 1 Trucks Interest Payable Cash May 1 Cash Discount on Notes Payable Notes Payable August 1 Retained Earnings Dividends Payable September 10 Dividends Payable