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Swifty Limited, which uses a perpetual inventory system, purchased inventory costing $24,400 on February 1...

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Accounting

Swifty Limited, which uses a perpetual inventory system, purchased inventory costing $24,400 on February 1 by issuing a 3-month note payable bearing interest at 6%, with interest and principal due on May 1. The company's vear end is on March 31 and the company records adjusting entries only at that time.
(a)
Your answer is correct.
Prepare the journal entry to record the purchase of inventory on February 1.(Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List deblt entry before credit entry)
Date
Account Titles
Debit
Credit
Feb. 1
Inventory
24,400
eTextbook and Media
List of Accounts
Attempts: 1 of 15 used
(b)
Your answer is partially correct.
Prepare the journal entry to record the accrual of interest expense on March 31.(Credit account titles ore automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debit entry before credit entry.)
Date Account Titles
Debit
Credit
Mar. 31
Interest Expense
Interest Payable
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