Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following are two independent situations. (cre

The following are two independent situations. (Credit account titles are automatically indented when amount is...

50.1K

Verified Solution

Question

Accounting

The following 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, Sheffield Co. sells merchandise on account to Pryor Inc. for $11,700, terms 410,n30. On January 16, Pryor Inc. pays the amount due. Prepare the entries on Sheffield's books to record the sale and related collection.
(b) On January 10, Andrew Farley uses his Paltrow Co. credit card to purchase merchandise from Paltrow Co. for $17,400. On February 10, Farley is billed for the amount due of $17,400. On February 12, Farley pays $8,700 on the balance due. On March 10, Farley is billed for the amount due, including interest at 4% 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.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students