Question 1 of 7 The following are selected 2025 transactions of Skysong Corporation. 4.39/14 ! Sept. 1 Purchased inventory from Encino Company on account for $70,500. Skysong records purchases gross and uses a periodic inventory system. Oct. 1 Issued a $70,500, 12-month, 8% note to Encino in payment of account. Oct. 1 Borrowed $70,500 from the Shore Bank by signing a 12-month, zero-interest-bearing $76,140 note. (a) Your Answer Correct Answer Your answer is partially correct. Prepare journal entries for the selected transactions above. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record entries in the Date Account Titles and Explanation Debit September 1 Inventory Accounts Payable October 1 Accounts Payable Notes Payable October 1 Cash 70500 70500 70500 Discount on Notes Payable 5640 Notes Payable Credit Prepare adjusting entries at December 31. (If no entry is required, select "No Entry for the account tries and enter u for the amounts Credit account titles are automatically Indented when amount is entered. Do not indent manually. Round answers to O decimal places, es 5,125. List all debit entries before credit entries) View Accom Date December 31 Account Titles and Explanation December 31 (To record interest on the note) (To record discount on the note) eTextbook and Media Debit Credit Que Accor Que Act Qu Act Qu Act Q AC