Presented here are two independent situations.
(a) On January 6, Bennett Catering sells food and services 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, Erin Bybee uses her Sheridan Co. credit card to purchase kitchen supplies from Sheridan Co. for $9,000. On Febuary 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 percent 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.