Weygandt, Financial & Managerial Accounting, 2e Financial & Managerial Accountin

Question

Weygandt, Financial & Managerial Accounting, 2e Financial & Managerial Accounting (ACCT 2100 & 2110 Assignment Gradebook ORION Downloadable eTextbook ent BACK NEXT NEXT 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) On January 6, Brumbaugh Co. sells merchandise on account t (b) On Ja o Pryor Inc. for $7,100, terms 4/10, 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. nuary 10, Andrew Farley uses his Paltrow Co. credit car d to purchase merchandise from Paltrow Co. for $13,300. On February 10, Farley is billed for the amount due of $13,300. On February 12, Farley pays $6,650 on the balance due. On March 10, Farley is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. P Co.'s books related to the transactions that occurred on January 10, February 12, and March 10 repare the entries on Paltrow No. Date Account Titles and Explanation Debit (a) Jan. 6 TAccounts Receivable 7,100 Sales Revenue 7,100 Jan. 16 TCash 6,816 Sales Discounts 284 Accounts Receivable 7,100 (b 13,300 Sales Revenue 13,300 ,650 6,650 Accounts Receivable

Explanation / Answer

Solution:-

(A) Jan 6 :- Accounts receivable a/c Dr. 7100

To Sales Revenue 7100

Jan 16:- Cash A/c Dr. 6816

Discount Dr. 284

To A/c Receivable 7100

(B) Jan 10:- Account recevable 13300

To sales 13300

Feb 12:- Cash Dr. 6650

To A/c Rec 6650

Mar 10:- Int Receivable Dr. 133 (6650*2%)

To Int revenue 130

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