On July 1, Kennel Corp. sold merchandise on account to Cambridge Inc. for $54,800, terms 1/10, n/30. The cost of the merchandise sold was $32,400. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit July 1 Accounts Receivable 54,800 Sales 54.800 (To record credit sale) July 1 Cost of Goods Sold 32,400 Inventory 32,400 (To record cost of merchandise sold) On July 9, Cambridge paid for the merchandise. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 9 Cash 0 Sales Discounts 972 Accounts Receivable 48100 e Textbook and Media List of Accounts Your answer is partially correct. Assume now that Cambridge did not pay on July 9, as indicated above. At the end of August, Kennel added one month's interest to Cambridge's account for the overdue receivable. Kennel charges 12% per year on overdue accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Aug. 31 Accounts Receivable 972 Bad Debts Expense 972