Presented below are selected transactions of Palmer Company. Palmer sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Grey Company for $6,000, terms 2/10, n/30. 3 Grey Company returned merchandise worth $600 to Palmer. Palmer collected the amount due from Grey Company from the March 1 sale. 15 Palmer sold merchandise for $10,000 in its retail outlet. The customers used their Palmer credit card. 31 Palmer added 1% monthly interest to the customers' credit card balance. April 10 Palmer collected $3,050 from credit card customers. (a)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Selected Transactions of Palmer Company**

Palmer Company sells in large quantities to other companies and has a small retail outlet for its products. The following transactions are recorded:

- **March 1**: Sold merchandise on account to Grey Company for $6,000, with terms 2/10, n/30.
- **March 3**: Grey Company returned merchandise worth $600 to Palmer.
- **March 9**: Palmer collected the amount due from Grey Company from the March 1 sale.
- **March 15**: Palmer sold merchandise for $10,000 in its retail outlet. The customers used their Palmer credit card.
- **March 31**: Palmer added a 1% monthly interest to the customers' credit card balance.
- **April 10**: Palmer collected $3,050 from credit card customers.

**Journal Entry Preparation**

To record these transactions in a journal, follow these guidelines. Credit account titles will be automatically indented when the amount is entered, so do not indent manually.

| Date       | Account Titles and Explanation | Debit | Credit |
|------------|--------------------------------|-------|--------|
| March 1    |                                |       |        |
| March 3    |                                |       |        |

(Account titles and amounts need to be filled based on the understanding and application of accounting principles relevant to each transaction.)
Transcribed Image Text:**Selected Transactions of Palmer Company** Palmer Company sells in large quantities to other companies and has a small retail outlet for its products. The following transactions are recorded: - **March 1**: Sold merchandise on account to Grey Company for $6,000, with terms 2/10, n/30. - **March 3**: Grey Company returned merchandise worth $600 to Palmer. - **March 9**: Palmer collected the amount due from Grey Company from the March 1 sale. - **March 15**: Palmer sold merchandise for $10,000 in its retail outlet. The customers used their Palmer credit card. - **March 31**: Palmer added a 1% monthly interest to the customers' credit card balance. - **April 10**: Palmer collected $3,050 from credit card customers. **Journal Entry Preparation** To record these transactions in a journal, follow these guidelines. Credit account titles will be automatically indented when the amount is entered, so do not indent manually. | Date | Account Titles and Explanation | Debit | Credit | |------------|--------------------------------|-------|--------| | March 1 | | | | | March 3 | | | | (Account titles and amounts need to be filled based on the understanding and application of accounting principles relevant to each transaction.)
This image displays a tabular format with dates on the left side, including March 1, 3, 9, 15, 31, and April 10. Each date is associated with three empty, labeled fields or text boxes distributed horizontally.

No diagrams or graphs are present in the image. 

The table likely serves as a template or form for logging or tracking activities, events, or data entries corresponding to the specified dates in March and April.
Transcribed Image Text:This image displays a tabular format with dates on the left side, including March 1, 3, 9, 15, 31, and April 10. Each date is associated with three empty, labeled fields or text boxes distributed horizontally. No diagrams or graphs are present in the image. The table likely serves as a template or form for logging or tracking activities, events, or data entries corresponding to the specified dates in March and April.
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