In Questions 1,2, 3, 4 prepare the journal entries for the following transactions.

(1)

October 17, 2011 Your company, RDV Sports purchased merchandise for $12,000 from ABC Supply Company for $12,000 on credit. RDV Sport Company uses a perpetual inventory system. Terms were 1/10, n/30 days.

(2)

November 16, 2011 RDV Sport Company gave ABC Supply Company a 90-day, 10%, $12,000 Note payable to extend a past due account from October 17^th

(3)

December 31, 2011 Prepare adjusting entry for accrued interest.

(4)

Record payment of the note given to ABC Supply Company.