On June 1, 2020 Comfort Creamery Corp. purchased 9,000 wooden barrels on account for $900,000 (purchase price of $100/barrel). The terms of the purchase were 2/10, n/30. Comfort Creamery Corp. accounts for such purchases using the net method.

Prepare the journal entry to record the purchase of 9,000 wooden barrels.

Comfort Creamery Corp. paid for the barrels on June 17, 2020. Prepare the journal entry to record the payment for the 9,000 wooden barrels.

On 8/1/2020, Comfort Creamery Corp. has found they are low on cash. They have decided to enter into an agreement with Starlight Bank. Comfort Creamery Corp. issed a $3,300,000, 3-year, 8% note to Starlight Bank (the first payment is due 1 year from today).

Record the issuance of the note on 8/1/2020.

Record the adjusting entry at year-end to recognize interest expense.