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On January 10, Mary Dawes uses her Pierson Co. credit card to purchase merchandise from Pierson Co. for $9,000. On February 10, Dawes is billed
On January 10, Mary Dawes uses her Pierson Co. credit card to purchase merchandise from Pierson Co. for $9,000. On February 10, Dawes is billed for the amount due of $9,000. On February 12, Dawes pays $5,000 on the balance due. On March 10, Dawes is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. Prepare the entries on Pierson Co.'s books related to the transactions that occurred on January 10, February 12, and March 10. date Account/Description Debit Credit Jan. 10 Accounts receivable-Dawes 9,000 Sales 9,000 Feb. 12 Cash 5,000 Accounts receivable-Dawes 5,000 Mar. 10 Accounts receivable-Dawes Interest revenue
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