The following are selected transactions of Waterway Group. Waterway prepares financial statements quarterly (amounts in thousands). Jan. 2 Purchased merchandise on account from Nan Company, $42,000, terms 3/10, n/30. (Waterway uses the perpetual inventory system.) Feb. 1 Issued a 9%,2-month, $42,000 note to Nan in payment of account. Mar. 31 Accrued interest for 2 months on Nan note. Apr. 1 Paid face value and interest on Nan note. July 1 Purchased equipment from Ji-yoo Equipment paying #12,500 in cash and signing a 10%,3-month, $57,600 note. Sept. 30 Accrued interest for 3 months on Ji-yoo note. Oct. 1 Paid face value and interest on Ji-yoo note. Dec. 1 Borrowed $19,200 from the Wonju Bank by issuing a 3-month, 8% note with