Presented below are two independent situations.
(a) On January 6, Bennett Co. sells merchandise on account to Jackie Inc. for $7,000, terms 2/10, n/30. On January 16, Jackie Inc. pays the amount due. Prepare the entries on Bennett's books to record the sale and related collection.
(b) On January 10, Connor Bybee uses his Sheridan Co. credit card to purchase merchandise from Sheridan Co. for $9,000. On February 10, Bybee is billed for the amount due of $9,000. On February 12, Bybee pays $6,000 on the balance due. On March 10, Bybee is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. Prepare the entries on Sheridan Co.'s books related to the transactions that occurred on January 10, February 12, and March 10.

  • CreatedDecember 29, 2012
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