During the month of March, QNI Corporation made the following credit sales and had the Following related

Question:

During the month of March, QNI Corporation made the following credit sales and had the Following related collections. QNI prepares financial statements for the first quarter of operations at the end of March.

March.

March 3 Sold goods to AAA company for a gross price of $1,400.

The terms of the sale were 2/10, n/30.

March 8 Sold goods to BBB company for a gross price of $800.

The terms of the sale were 2/10, n/30.

March 11 Received full payment from AAA.

March 28 Received full payment from BBB.

March 29 Sold goods t CCC company for a gross price of S1,800.

The terms of the sale were 2/10, n/30.

REQUIRED:

a. Prepare the journal entries to record these transactions.

b. Note that BBB missed the discount period by ten days. Compute the annual interest rate BBB paid for the use of the $800 for that ten-days. Compute the annual interest rate BBB paid for the use of the $800 for that ten-day period. Assume that BBB can borrow money from the bank at 9 percent, what should BBB have done differently?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Corporation
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