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Question - The following are selected 2017 transactions of Wildhorse Corporation.
Sept. 1 Purchased inventory from Encino Company on account for $39,400. Wildhorse records purchases gross and uses a periodic inventory system.
Oct. 1 Issued a $39,400, 12-month, 8% note to Encino in payment of account.
Oct. 1 Borrowed $39,400 from the Shore Bank by signing a 12-month, zero-interest-bearing $42,720 note.
Required - Prepare journal entries for the selected transactions above.
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