The following information is extracted from Tara Corporations accounting records:

May	1	Received a $6,000, 12%, 90-day note from V. Leigh, a customer, for merchandise originally purchased on account.
	6	Received a $9,000, 10%, 120-day note from C. Gable, a customer, for merchandise originally purchased on account.
	11	Sold the Leigh and Gable notes with recourse at the bank at 13%. In addition, borrowed $10,000 from the bank for 90 days at 12%. The bank remits the face value less the interest. The estimated recourse liability for Leigh and Gable is $84 and $110, respectively.
July	31	The July bank statement indicated that the Leigh note had been paid.
Aug.	10	Repaid the $10,000 borrowed on May 11.
Sept.	4	Received notice that Gable had defaulted on the May 6 note. The bank charged a fee of $10. Paid the amount due on the Gable note to the bank. Informed Gable to pay Tara the entire amount due plus 11% interest on the total of the face amount of the note, the accrued interest, and the fee from the maturity date until Gable remits the amount owed.
	23	Received the amount due from Gable.

Required:

Prepare journal entries to record the preceding information, assuming that Tara usually does not sell its notes. (Assume a 360-day year for the purposes of computing interest and round all calculations to the nearest penny.)

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Chart of Accounts

CHART OF ACCOUNTS

Tara Corporation

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
125	Notes Receivable
126	Notes Receivable Dishonored
141	Inventory
152	Prepaid Insurance
181	Equipment
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
215	Recourse Liability
221	Notes Payable
231	Salaries Payable
242	Discount on Notes Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue
431	Interest Income

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
532	Bad Debt Expense
540	Interest Expense
541	Depreciation Expense
559	Miscellaneous Expenses
601	Loss from Sale of Receivables
603	Gain from Sale of Notes
604	Gain from Collection of Dishonored Note
910	Income Tax Expense

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General Journal

Prepare journal entries to record the information, assuming that Tara usually does not sell its notes. (Assume a 360-day year for the purposes of computing interest and round all calculations to the nearest penny.) Additional Instructions