Perfect Systems borrows $186,000 cash on May 15, 2011, by signing a 60-day, 6% note.

1.

Assume the face value of the note equals $186,000, the principal of the loan.

(a)	Prepare the journal entries to record issuance of the note. (Omit the "$" sign in your response)

Date		General Journal	Debit	Credit
May	15	(Click to select)Interest expenseAccounts receivableNotes receivableCashAccounts payableNotes payableSalesMerchandise inventory
		(Click to select)Interest expenseNotes payableMerchandise inventorySalesAccounts receivableNotes receivableCashAccounts payable

(b)	Prepare the journal entries to record payment of the note at maturity. (Use 360 days a year. Do not round intermediate calculations and round your final answers to the nearest dollar amount. Omit the "$" sign in your response)

Date	General Journal	Debit	Credit
July 14	(Click to select)Notes receivableMerchandise inventoryInterest expenseCashAccounts receivableSalesAccounts payableNotes payable
	(Click to select)Accounts payableMerchandise inventoryCashNotes receivableSalesAccounts receivableInterest expenseNotes payable
	(Click to select)Interest expenseNotes payableAccounts receivableNotes receivableMerchandise inventoryCashSalesAccounts payable