Selected transactions for $20-1$ are provided below.

Jan. $5$ Reinstated the account of Christine Roby, which had been written off in the preceding year, and received $$500$ cash in full settlement.

$14$ Issued a $$3,000,3-$month, $6\%$ note to Zekir Computer Systems to purchase a new computer system $($Computer System$).$ The system, with an expected life of four years and no salvage value, will be depreciated using the double$-$declining$-$balance method.

Feb. $15$ Received a $$2,500,6-$month, $7\%$ note from Carol Reynolds for sale of merchandise.

Mar. $11$ Morgan Hartley invested an additional $$5,000$ into the business.

Apr. $1$ Disposed of a cash register $($Store Equipment$)$ originally costing $$675$ with a $$75$ salvage value. Depreciation is computed on a monthly basis with adjusting entries made at the end of each year. Depreciation after eight years of use was $$480$ as of December $31.$ The cash register had an estimated life of $10$ years.

$12$ Borrowed $$5,000$ from Dean Bank, signing a $75-$day, $10\%$ note.

Apr. $14$ Paid $$500,$ plus interest, to Zekir Computer Systems $($see January $14)$ and gave a new $$2,500,30-$day, $8\%$ note to extend time for payment.

May $1$ Wrote off the $$1,200$ balance owed by Brenda Husband as uncollectible.

$14$ Paid the principal and interest due on the $$2,500$ note to Zekir Computer Systems. $($See April $14.)$

$25$ Paid $$75$ cash to Snowden$$s Service Station for an oil change and tire rotation on the company van.

June $1$ Received a $$1,700,120-$day, $8\%$ note from Heidi Kruczkiewicz to settle an account receivable.

$20$ Reinstated the account of Brenda Husband, which had been written off last month, and received $$1,200$ cash in full settlement. $($See May $1.)$

$22$ Paid $$30,000$ cash to Klippi Construction for an addition $($Addition$)$ to the store so that more merchandise could be displayed. The addition has an estimated salvage value of $$2,000$ and an estimated life of $20$ years. Depreciation is to be calculated using the straight$-$line method.

$26$ Paid the principal and interest due on the $$5,000$ note to Dean Bank. $($See April $12.)$

$30$ Upon opening the store, it was apparent that someone had entered the store illegally. Jordan and Morgan need to determine whether anything had been stolen. A physical inventory was taken and it was determined that $$67,500$ in inventory was on hand, but they need to know how much inventory should have been on hand. Estimate the cost using the retail method based on the following information. Figures at cost: beginning inventory, $$91,250$; and net purchases, $$70,000.$ Figures at retail: beginning inventory, $$120,000$; net purchases, $$95,000$; and net sales, $$125,000.$ Compare your estimate with the balance of $$67,500.$ Does it appear that any inventory was stolen? Space is provided for your calculations following the journal pages for the problem in your working papers.

July $1$ Heidi Kruczkiewicz$$s note $($see June $1)$ is discounted at Marshall Bank at a discount rate of $12\%.$

$8$ Sold $$4,250$ in merchandise to Kim Sackett, terms $2/10,$ n$/30.$

$10$ Purchased merchandise on account for $$15,000$ from Dionis Distributing. Credit terms are $3/20,$ n$/30.$

$18$ Received payment in full from Kim Sackett, less discount, for merchandise sold on July $8.$

$30$ Paid Dionis Distributing for merchandise purchased on account on July $10.$

Aug. $1$ Paid $$500$ to Snowden$$s Service Station to replace the exhaust system on the company van.

$15$ Received notification from Dean Bank that the principal and interest were collected on the note from Carol Reynolds. $($See February $15.)$ The bank fee for collecting the note was $$10.$

$22$ Wrote off the $$750$ balance owed by Shelley Kozub as uncollectible.

Sept. $1$ Traded the company car $($Automobile$)$ for a newer one at Plume Motors. The old car originally cost $$23,000$ and is depreciated up$-$to$-$date in the amount of $$19,000.$ A trade$-$in allowance of $$5,500$ was given. The new car had a market value of $$40,000$ and the balance was paid in cash. The new car should last at least $100,000$ miles and will be depreciated at $$0\mathrm{.}375$ per mile.

$9$ Received a $$2,000,60-$day, $7\mathrm{.}5\%$ note from Tammy Jones in payment of an account receivable.

$15$ Purchased $$3,500$ worth of toys from Dennis Designs, terms n$/30.$

$29$ Received notification from Marshall Bank that Heidi Kruczkiewicz$$s note was dishonored. $($See June $1$ and July $1.)$ A check is issued to cover the maturity value plus a $$50$ bank fee that must be paid to the bank.

Oct. $15$ Issued a $$3,500,90-$day, $8\%$ note to Dennis Designs to extend time for payment on an account payable.

$20$ Borrowed $$10,000$ for $180$ days from Ohler$-$Cupplo Savings Association on a non$-$interest$-$bearing note. The discount rate is $7\mathrm{.}5\%.$

$31$ Sold $$125$ of merchandise for cash to Melinda Miller.

Nov. $1$ Received a $$500,30-$day, $5\%$ note from Laura Nottingham in payment of an account receivable.

$8$ Received notification from Marshall Bank that Tammy Jones dishonored her note. $($See September $9.)$ No fee was charged.

$30$ Heidi Kruczkiewicz$$s dishonored note is collected; Kruczkiewicz pays