The following selected transactions occurred for Bellevue Corporation. The company uses a perpetual inventory system has a May 31 year end, and adjusts its accounts annually. Feb. 1 3 26 Mar. 27 Sold merchandise for $7,400 on account (1/30) to Morgan Ltd. The cost of goods sold was $5,550, Sold $13,200 of merchandise costing $8,200 to Gauthier Company and accepted Gauthier's two-month.5% note in payment. Interest is due at maturity. Sold $12,000 of merchandise to Mathias Corp., terms n/30. The cost of the merchandise sold was $7.400. Sold, on account (n/30). $4,300 of merchandise that cost $2,800 to Superior Limited. Accepted a two-month. 7%. $12,000 note from Mathias in settlement of its account. (See February 26 transaction.) Interest is due at maturity. Collected the Gauthier note in full. (See February 3 transaction.) The Mathias note of March 27 was dishonoured. It is expected that Mathias will eventually pay the amount owed. Recorded accrued interest for three months on outstanding interest on the receivables overdue from Morgan and Superior. Interest on unpaid receivables is charged It 24% per annum (2% per month). (See February 1 and March 6 transactions.) Apr. 3 May 27 31