On January 10, Kristin Pitt uses her Stampfer Co. credit card to purchase merchandise from Stampfer Co. for $1,700. On February 10, Pitt is billed for the amount due of $1,700. On February 12, Pitt pays $1,100 on the balance due. On March 10, Pitt is billed for the amount due, including interest at 1% per month on the unpaid balance as of February 12.
Instructions
Prepare the entries on Stampfer Co.’s books related to the transactions that occurred on
January 10, February 12, and March 10. (Omit cost of goods sold entries.)