Question 3 Grey Boat Company often requires customers to sign promissory notes for major credit purchases. Journalize the following transactions for Grey Boat Company.

Feb. 12 Accepted a $40,000, 6%, 60-day note from Bill Bazil for a 19-foot motorboat built to his specifications.

April 14 Received notification from Bill Bazil that he was unable to honor his promissory note but that he expects to pay the amount owed in May.

May 26 Received a check from Bill Bazil for the total amount owed.

June 10 Received notification by the bank that Bill Bazils check was being returned NSF and that Mr. Bazil had declared personal bankruptcy.