Year $1$

April $20$ Purchased $$40,250$ of merchandise on credit from Locust, terms n$/30.$

May $19$ Replaced the April $20$ account payable to Locust with a $90-$day, $10\%,$ $$35,000$ note payable along with paying $$5,250$ in cash.

July $8$ Borrowed $$80,000$ cash from NBR Bank by signing a $120-$day, $9\%,$ $$80,000$ note

$q,$ payable.

$?\_\_$ Paid the amount due on the note to Locust at the maturity date.

$q,$

$q,$

November $28$ Paid the amount due on the note to NBR Bank at the maturity date. Borrowed $$42,000$ cash from Fargo Bank by signing a $60-$day, $8\%,$ $$42,000$ note payable.

December $31$ Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Year $2$

$q,?q,$ Paid the amount due on the note to Fargo Bank at the maturity date.

$4.$ Determine the interest expense recorded in Year $2.$

Note: Do not round your intermediate calculations. Use $360$ days a year.