Question

Exercise 8-03 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, 1/30. 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 merchandite 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 (b)

Answer 1

Date Jan6, Jounal Entries on the books of Brun baugh Co. Accounts Receivable-Pryer Inc 7000 Sales Cash 6860 Dee Discount 140 Accounts Rece - Pryer one 7000 Janks, 7000 Dr. Tanlo, 9000 Feb 12, Jounal Entries on the books af Paltrow 6. ks Accounts Rece.- Forley 9000 Sales Cash 5000 Accounts Rece- Faro Ley Accounts Rece - Farley Interest on Grecht [4000x x sooo 40 Mar. 10, 40

Answer 2

From where the 4000