(Question) June 1 2008---Received a $6000, 1-year, 8%, note from Sue Forest as full payment on her account.

My eyes hurt.

No, the calculation is incorrect. To calculate the amount of Merchandise Inventory and Accounts Payable, you need to add the interest to the principal amount of the note. Here is the correct calculation:

Principal amount: $6,000
Interest: ($6,000 * 8% * 1 year) = $480

To calculate the total amount to be recorded:

Total amount: Principal amount + Interest
Total amount = $6,000 + $480 = $6,480

Therefore, the correct entries would be:

Merchandise Inventory: $6,480
Accounts Payable: $6,480

Yes, your calculation is correct. To determine the amount of $6,480, you multiplied the principal amount of $6,000 by the interest rate of 8% to calculate the interest owed, which is $480. Then, you added the interest amount to the principal to get a total of $6,480.