Exercise 8-03 Your answer is partially correct. Try again. Presented below are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) (b) On January 6, Brumbaugh Co. sells merchandise on account to Pryor Inc. for $7,000, terms 2/10, n/30. On January 16, Pryor Inc. pays the amount due. Prepare the entries on Brumbaugh's books to record the sale and related collection. (Omit cost of goods sold entries.) On January 10, Andrew Farley uses his Paltrow Co. credit card to purchase merchandise from Paltrow Co. for $9,000. On February 10, Farley is billed for the amount due of $9,000. On February 12, Farley pays $5,000 on the balance due. On March 10, Farley is billed for the amount due, including interest at 1% per month on the unpaid balance as of February 12. Prepare the entries on Paltrow Co.'s books related to the transactions that occurred on January 10, February 12, and March 10. (Omit cost of goods sold entries.) No. Date Account Titles and Explanation Debit Credit Jan. 6 |accounts receivable 7000 | sales revenue 7000 Tan. 16 Tcash 4200 Sales Discounts 2RO 7000 . ..... ...... . Jan. 10 - Taccounts receivable sales revenue TFeb. 12 cash 9000 5000 T accounts receivable 5000 Mar. 10 accounts receivable 200 interest revenue 2002