Snow Day Air Conditioner Company engaged in the following transactions during June of the current​ year

Suppose liberty Sales Co. engaged in the following transactions during June of current year:

June 3 Purchased inventory on credit terms of 1/10 net eom (end of month), $1,600.

9 Returned 40% of the inventory purchased on June 3. It was defective.

12 Sold goods for cash, $920 (cost, $550).

15 Purchased goods for $5,000. Credit terms were 3/15, net 30. 16 Paid a $260 freight bill on goods purchased. 18 Sold inventory for $2,000 on credit terms of 2/10, n/30 (cost, $1,180).

22 Received returned goods from the customer of the June 18 sale, $800 (cost, $480).

24 Borrowed money from the bank to take advantage of the discount offered on the June 15 purchase. Signed a note payable to the bank for the amount, $4,850.

24 Paid supplier for goods purchased on June 15, less the discount. 28 Received cash in full settlement of the account from the customer who purchased inventory on June 18, less the return on June 22, and less the discount.

29 Paid the amount owed on account from the purchase of June 3, less the June 9 return.

Requirements :

1- Journalize the preceding transactions for Liberty.

2- Set up T-accounts and post the journal entries to show the ending balances in the Inventory and the Cost of Good Sold accounts.

3- Assume that the note payable signed on June 24 requires the payment of $90 interest expense. Was borrowing funds to take the cash discount a wise or unwise decision?