Prepare adjusting entries at December $31.($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. The followine are selected $2020$ transactions of Crane Corporation.

Sept. Purchased inwentory from Encino Company on account for $$46,900.$ Crane records purchases gross and uses a periodic

$1$ inventorysystem.

Oct. Issued a $$46,800,12-$month, $8\%$ note to Encino in payment of account.

Oct. Borrowed $$46,800$ from the Shore Bank by signine a $12-$month, zero$-$interest$-$bearine $$49,920$ note.

$($a$)$

Your answer is correct.

Prepare journal entries for the selected transactions above. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$

for the amounts. Credit account titles are outomatically indented when amount is entered. Do not indent manually. Record entries in the

order displayed in the problem statement$)$

Ite

$r1,V$

Account Titles and Explanation

Purchases

Accounts Payable

Accounts Payable

Notes Parable

Cash

Discount an Notes Payable

Debit

Credit

Credit

$46\mathrm{.}800$

Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to $0$ decimal places, e$.$g$.$

$5,125.$

Date

Account Titles and Explanation

Debit

Credit

December

$31$

$($To record interest on the note$)$

December

$31$

$($To record discount on the note$)$