Singer Corporation was involved in the following events in the current year:
June 30 Barney Manufacturing gives Singer a $5,000, 11%, 90-day note for merchandise purchased.
July 15 Dillon Construction Co. gives Singer a $6,000, 10%, 60day note for merchandise originally purchased, on account, on April 20 of the current year.
30 The Barney and Dillon notes are sold with recourse by Singer at its bank at 12%. The estimated fair value of the recourse liability is $1,500.
Sept. 15 The bank notifies Singer that the Dillon note was paid.
30 The bank notifies Singer that Barney defaulted on the note and charges the amount of principal, interest, and a fee of $10 against Singer's bank account.
Required:
Prepare the journal entries to record the preceding information on Singer’s accounting records. Assume that the company does not normally sell its notes. (Assume a 360-day year and round all answers to the nearest penny.)