having a hard time computing April 22. how do I figure out the intetest expense

Question

having a hard time computing April 22.
how do I figure out the intetest expense and the cash? the answer is
Debit accounts payable 26,950
debit interest expense 550
and credit cash 27,500
but how does one get the 27,500. I don't see it. please show and explain the computation. thank you.

Problems-166 pots is totab Show al wark whone appropriate (12 poiss) Mtcso Corperaion purchased nerchundsc oe Manch 26, 2011 as crode r merclundse for arodit Os Apel 3, 2011, they paid hree ouths of the remaining labity du ananing Morscos 700 Mar 31, 211 accouds payasla as 80, 8ro 8o, Bro 8o,STU Apr 22, 2011

Explanation / Answer

Computation of purchase discount lost :

Date Account Titles Debit Credit $ $ March 26, 2011 Merchandise Inventory 122,500 Accounts payable 122,500 March 31, 2011 Accounts payable 14,700 Merchandise inventory 14,700 April 3, 2011 Accounts payable 80,850 Cash 80,850 April 22, 2011 Accounts payable 26,950 Purchase discount lost 550 Cash 27,500

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