Chapter 8, Problem 8.5S

(Learning Objective 3: Account for a short-term note payable) Jamison Sports Authority purchased inventory costing $25,000 by signing a 12%, six-month, short-term note payable. The purchase occurred on January 1, 2018. Jamison will pay the entire note (principal and interest) on the note’s maturity date of July 1, 2018. Journalize the company’s (a) purchase of inventory and (b) payment of the note plus interest on July 1, 2018.