Swifty Limited, which uses a perpetual inventory system, purchased inventory costing $$24,400$ on February $1$ by issuing a $3-$month note payable bearing interest at $6\%,$ with interest and principal due on May $1.$ The company's vear end is on March $31$ and the company records adjusting entries only at that time.

$($a$)$

Your answer is correct.

Prepare the journal entry to record the purchase of inventory on February $1.($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. List deblt entry before credit entry$)$

Date

Account Titles

Debit

Credit

Feb. $1$

Inventory

$24,400$

eTextbook and Media

List of Accounts

Attempts: $1$ of $15$ used

$($b$)$

Your answer is partially correct.

Prepare the journal entry to record the accrual of interest expense on March $31.($Credit account titles ore automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

Date Account Titles

Debit

Credit

Mar. $31$

Interest Expense

Interest Payable