NTER VERSION BACK ! NEXT Presented below are two independent situations. (Credit
ID: 2552802 • Letter: N
Question
NTER VERSION BACK ! 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 to Pryor Inc. for $7,100, terms 4/10, n/30. On (b) On January 10, Andrew Farley uses his Paltrow Co. credit card to purchase merchandise from Paltrow Co. for January 16, Pryor Inc. pays the amount due. Prepare the entries on Brumbaugh's books to record the sale and related collection. $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. Prepare the entries on Paltrow Co.'s books related to the transactions that occurred on January 10, February 12, and March 10. No. Date Account Titles and Explanation Debit Credit (a) T Jan. 6 TAccounts Receivable 7,10011 Sales Revenue 7,100 Dan. 16 TCash 6,816 284 Sales Discounts 7,100 Accounts Receivable (b)Dan. 10 TAccounts Receivable 13.300 13,300Explanation / Answer
Dear student Journal entry for March 10 will be:
Accounts receivables $133
Interest Revenue $133
You have debited interest receivables account instead of this debit the accounts receivables account, rest of the journal entries are already perfectly done.
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