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On January 6, Swifty 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 Swifty's books to record the sale and related collection. (Omit cost of goods sold eptries.)
On January 10, Andrew Farley uses his Marigold Co. credit card to purchase merchandise from Marigold Co. for $10,600. On February 10, Farley is billed for the amount due of $10,600. On February 12, Farley pays $5,900 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 Marigold Co's books related to the transactions that occurred on January 10, February 12, and March
10. (Omit cost of goods sold entries.)