Journalize the following entries on the books of the borrower and creditor. (Assume a 360-day year is used for interest calculations.) Refer to the Chart of Accounts for exact wording of account titles.

June 1 James Co. purchased merchandise on account from OLeary Co., $90,000, terms n/30. The cost of merchandise sold was $54,000. 30 James Co. issued a 60-day, 5% note for $90,000 on account. Aug. 29 James Co. paid the amount due.