Transcribed Image Text: Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 8,000 treats at $1 per treat.

Transcribed Image Text: Barkers Baked Goods purchases dog treats from a supplier
on February 2 at a quantity of 8,000 treats at $1 per treat.
Terms of the purchase are 2/10, n/30. Barkers pays half
the amount due in cash on February 28 but cannot pay the
remaining balance due in four days. The supplier
renegotiates the terms on March 4 and allows Barkers to
convert its purchase payment into a short-term note, with
an annual interest rate of 6 percent, payable in 9 months.
A. Compute the interest expense due when Barkers honors
the note.
B. Show the entry to record the payment of the short-term
note on December 4. If an amount box does not require an
entry, leave it blank.
Dec. 4
Accounts Payable
Accounts Receivable
Cash
Interest Expense
Short-Term Notes Payable

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