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) (b) On January 6, Sheffield Co. sells merchandise on account to Pryor Inc. for $11,700, terms 4/10, n/30. On January 16, Pryor Inc. pays the amount due. Prepare the entries on Sheffield's books to record the sale and related collection. 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. No. Date Account Titles and Explanation (a) (b) > > Debit Credit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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)
(b)
On January 6, Sheffield Co. sells merchandise on account to Pryor Inc. for $11,700, terms 4/10, n/30. On January 16, Pryor
Inc. pays the amount due. Prepare the entries on Sheffield's books to record the sale and related collection.
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.
No.
Date
Account Titles and Explanation
(a)
(b)
>
>
Debit
Credit
Transcribed Image Text: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) (b) On January 6, Sheffield Co. sells merchandise on account to Pryor Inc. for $11,700, terms 4/10, n/30. On January 16, Pryor Inc. pays the amount due. Prepare the entries on Sheffield's books to record the sale and related collection. 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. No. Date Account Titles and Explanation (a) (b) > > Debit Credit
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