Question
On January 10, Erin Bybee uses her Sheridan Co. credit card to purchase kitchen sup- plies from Sheridan Co. for $9,000. On Febuary 10, Bybee
On January 10, Erin Bybee uses her Sheridan Co. credit card to purchase kitchen sup- plies from Sheridan Co. for $9,000. On Febuary 10, Bybee is billed for the amount due of $9,000. On February 12, Bybee pays $6,000 on the balance due. On March 10, Bybee is billed for the amount due, including interest at 2 percent per month on the unpaid balance as of February 12. Prepare the entries on Sheridan Co.s books related to the trans-actions that occurred on January 10, February 12, and March 10.
Jan | 10 | Accounts Receivable E. Bybee |
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| Sales Revenue |
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Feb. | 12 | Cash |
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| Accounts Receivable E. Bybee |
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Mar | 10 | Accounts Receivable E. Bybee |
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| Interest Revenue [2% *($9,000 - $6,000)] |
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