Vernon company sells a wide range of goods through two retail stores operated in adjoining cities. vernon purchases most of the goods it sells in its stores on credit, promising to pay suppliers later. occasionally, a short-term note payable is used to obtain cash for current use. the following transactions were selected from those occurring during the fiscal year, which ends on december 31: purchased merchandise on credit for $18,000 on january 10. borrowed $45,000 cash on march 1 from city bank by signing an interest-bearing note payable. the note is due at the end of six months (august 31) and has an annual interest rate of 10% payable at maturity.