Presented below are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal WileyPLUS Support jes in the order presented in the problem.) (a) 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.) (b) 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 (a) Jan. 6 Accounts Receivable 7000 Sales Revenue 7000 Jan. 16 Cash Sales Discounts (b) Jan. 10 Accounts Receivable 9000 Sales Revenue 9000 Feb. 12 Cash 5000 Accounts Receivable 5000
Presented below are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal WileyPLUS Support jes in the order presented in the problem.) (a) 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.) (b) 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 (a) Jan. 6 Accounts Receivable 7000 Sales Revenue 7000 Jan. 16 Cash Sales Discounts (b) Jan. 10 Accounts Receivable 9000 Sales Revenue 9000 Feb. 12 Cash 5000 Accounts Receivable 5000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Presented below are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record
| (a) | 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.) | |
| (b) | 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.) |
Transcribed Image Text:Presented below are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal
WileyPLUS Support jes in the order presented in the problem.)
(a) 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.)
(b) 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
(a)
Jan. 6
Accounts Receivable
7000
Sales Revenue
7000
Jan. 16
Cash
Sales Discounts
(b)
Jan. 10
Accounts Receivable
9000
Sales Revenue
9000
Feb. 12
Cash
5000
Accounts Receivable
5000
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