Purchased $40,250 of merchandise on credit from locust, terms n/30. tyrell uses the perpetual inventory system. may 19 replaced the april 20 account payable to locust with a 90-day, $35,000 note bearing 10% annual interest along with paying $5,250 in cash. july 8 borrowed $80,000 cash from nbr bank by signing a 120-day, 9% interest-bearing note with a face value of $80,000. paid the amount due on the note to locust at the maturity date. paid the amount due on the note to nbr bank at the maturity date. nov. 28 borrowed $42,000 cash from fargo bank by signing a 60-day, 8% interest-bearing note with a face value of $42,000. dec. 31 recorded an adjusting entry for accrued interest on the note to fargo bank.