Application Questions (8 marks A) Answer each question in the space provided. 1. The following are transactions related to notes receivable. In all cases, interest is due at maturity unless indicated otherwise. Jan Looned $6,000 to the Lucy's Lollipops, who signed a 6-month, 11% note due June 30. Feb 1 Another customer, Tanny's Terrible Towels who owed $7,500 settled her account by signing a 3-month, 8% note. Mar 31 Recorded accrued interest on all notes in preparation for issue of quarterly financial statements. Make one journal entry for this. Apr 30 Tanny defaulted on the note - living up to her company's "terrible" name. She wrote you letter saying, "I've moved to Mexico and you will never see any money from me ever. I have sent you a temible towel to wipe your tears." Jun 30 Lucy paid her note in full. Instructions: Record all of the transactions described. Do this on the journal paper provided on the next page. Round answers to nearest dollar. SHOW YOUR WORK. (8 marks)