Sheridan Music Store borrowed $32400 from the bank signing a 10%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be Debit Notes Payable, $3240; Credit Cash, $3240. Debit Cash, $810; Credit Interest Payable, $810. Debit Interest Expense, $3240; Credit Interest Payable, $3240. Debit Interest Expense, $270; Credit Interest Payable, $270.

Question 34 Sheridan Music Store borrowed $32400 from the bank signing a 10%, 3-month note on September 1. Principal and interest are payable to the bank on December 1. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on September 30, would be O Debit Notes Payable, $3240; Credit Cash, $3240. O Debit Cash, 5810; Credit Interest Payable, $810 O Debit Interest Expense, $3240; Credit Interest Payable, $3240. O Debit Interest Expense, $270; Credit Interest Payable, $270. Question 35 A company shows the following balances: Sales Revenue $2461000 Sales Returns and Allowances 421000 Sales Discounts 40000 Cost of Goods Sold 1400000 What is the gross profit rate? 56.0% 70.0% 30.0% 44.0%