Question 7 On January 1, 2017, the ledger of Wildhorse Ltd. contains the following liability accounts. Accounts Payable Sales Taxes Payable Unearned Service Revenue 56,920 6,840 16,880 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling 17,869, which includes 7% sales taxes. 12 Performed services for customers who had made advance payments of 11,940. (Credit Service Revenue.) 14 Paid revenue department for sales taxes collected in December 2016 (6,840). 20 Sold 580 units of a new product on credit at 52 per unit, plus 7% sales tax. 21 Borrowed 20,250 from DeKalb Bank on a 3-month, 6%, 20,250 note. 25 Sold merchandise for cash totaling 11,759, which includes 7% sales taxes. (b) Your answer is partially correct. Try again. Journalize the adjusting entries at January 31 for the outstanding notes payable. (Hint: Use one-third of a month for the DeKalb Bank note.) (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Tities and Explanation Debit Credit Jan. 31 Interest Expense 39 Interest Payable 39