Rachel was recently hired by Moncton Express Inc $($MEI$)$ to assist its payable clerk in bringing the accounts up to date. Rachel was asked to record the following transactions:

August $15$: MEI purchased a new inventory monitoring system. MEI issued a $\backslash$$$6,000$ non$-$interest$-$bearing note payable, due on October $15.$

August $18$: MEI borrowed $\backslash (\backslash$$ $10,000\backslash )$ from the bank in the form of a demand note. MEI authorizes the bank to take the interest payments from its bank account. Interest is payable on the last day of each month at $\backslash (4\backslash \%\backslash )$ per annum.

August $21$: MEI purchased $\backslash (\backslash$$ $8,000\backslash )$ of inventory, plus HST$,$ on account. The terms offered are $3/10,$ net $45.$

September $20$: MEI purchased a waste management system. MEI issues an $\backslash (\backslash$$ $8,000\backslash ),$ non$-$interest bearing note payable due in one year.

September $23$: MEI purchases $\backslash (\backslash$$ $3,000\backslash )$ of inventory, plus HST$,$ on account. The terms offered are $\backslash (3/10\backslash ),$ net $45.$

September $24$: Rachel pays the August $21$ and September $23$ invoices.

September $30$: Rachel accrues for unbilled utilities totalling $\backslash$$$1,700.$

Other information:

$-$ MEI uses the gross method to record accounts payable

$-$ MEI's year$-$end is December $31,$ and interim statements are normally prepared on a monthly basis.

$-$ MEI's latest interim statements are for the month ended July $31.$ The necessary accruals were made at that time, except that MEI only records depreciation expense at year$-$end.

$-$ The market rate of interest for MEl's short$-$term borrowings is $\backslash (5\backslash \%\backslash ).$

Required:

Prepare journal entries to record the documented events and the necessary accruals for the months of August and September. Calculate interest accruals based on the number of days, rather than months. Round your answers to the nearest dollar.