Presented below are two independent situations.
(a) On January 6, Mendenhall Co. sells merchandise on account to Miles Inc. for $9,000, terms 2/10, n/30. On January 16, Miles Inc. pays the amount due. Prepare the entries on Mendenhall’s books to record the sale and related collection.
(b) On January 10, Markus Klinko uses his Indrani Co. credit card to purchase merchandise from Indrani Co. for $9,000. On February 10, Klinko is billed for the amount due of $9,000. On February 12, Klinko pays $5,000 on the balance due. On March 10, Klinko is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. Prepare the entries on Indrani Co.’s books related to the transactions that occurred on January 10, February 12, and March 10.