The following transactions of Smooth Sounds Music Company occured during 2012 and 2013:

2012 of $17,000 principal plus interest. Record the short-term note payable in a separate account from the long-term note payable Sep Dec 3 Paid the six-month, 4% note at maturity. 31 Accrued warranty expense, which is estimated at 2.5% of sales of $195,000. 31 Accrued interest on the outstanding note payable. 2013 May 31 Paid the first installment and interest for one year on the outstanding note payable