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Recording Entries for Short$-$term Notes Payable

Masy's Store supported its operations for the year through short$-$term note financing as follows:

May $10$: The Company entered into a new credit agreement with certain financial institutions providing for revolving credit borrowings and letters of credit in an aggregate amount not to exceed $$3,900,000$ million. Interest rates are adjustable.

Sep. $30$: The company borrowed $$1,300,000$ on the revolving credit line, payable in $6$ months, at an interest rate of $7\mathrm{.}25\%$ due upon maturity.

Nov. $30$: Additional cash needed during peak holiday sale period was funded through the issuance of $60-$day, $$520,000$ commercial paper, discounted at $4\%.$

Jan. $29$: Paid off the commercial paper debt on due date.

Mar. $31$: Paid off the balance of $$1,300,000$ on the revolving credit line plus interest.

Required

Record the following journal entries, assuming a $360-$day year for interest computations:

a$.$ May $10-$Entered into credit line agreement.

b$.$ September $30-$Issuance of $$1,300,000$ note payable.

c$.$ November $30-$Issuance of $$520,000$ commercial paper. Compute the discount on note payable using $360$ days as the base for prorating interest. For the $$520,000$ note, compute the interest accrual based upon the exact number of days outstanding.

d$.$ December $31-$Adjusting entries.

e$.$ January $29-$Payment of $$520,000$ commercial paper.

f$.$ March $31$Payment of $$1,300,000$ note payable.

Note: Round your answers to the nearest whole dollar.

Note: If a journal entry isn't required on any of the dates shown, select $"$N$/$A$-$debit" and $"$N$/$A$-$credit" as the account names and leave the Dr$.$ and Cr$.$ answers blank $($zero$)$

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