Journalize the April transactions- Folly Footwear uses or a perpetual inventory system. April 1 Loaned $10,000 to Running World on a 6-month, 3% note. Interest is due at maturity. April 9 Purchased merchandise on accounts from White Shoe Distributers at a cost of $6,500, terms 2/10, n/30, FOB shipping point. April 10 The correct party paid freight charges of $200 to Rail Company for shipping the merchandise purchased on April 9. April 15 Received a $3,500 note from Frank Fudge in settlement of an account receivable. The note is a 3-month, 5%. Interest will be paid monthly. Paid White Shoe Distributers the balance owing from the April 9 purchase. April 18 April 20 Sold $120,000 of goods that cost $60,000 to MacDonald's Footwear, terms 2/10,n/30. April 21 Determined accounts receivable outstanding at year and are not collectable. $6,000 due from Cloud 9 Runners and $3,000 due from Athletics Wear are written off. Athletics Wear received a surprise tax refund and pays Folly Footwear the balance of $3,000 previously written off on April 21. April 25 April 30 Accrued the interest on the outstanding notes (Apr 1 and Apr 15) April 30 The company prepared internal financial statements and decided to use the percent of accounts receivable approach. The bookkeeper estimated that 5% of accounts receivable was uncollectable. Record the adjusting entry for the bad debt expense. (Hint: Prepare T-Accounts and post entries the necessary entries)