Presented below are two independent situations. Assume each company uses a periodic inventory system. 1. On January 6, Pharoah Co. sells merchandise on account to Pryor Company for $5,900, terms 2/10, n/30. On January 16, Pryor Company pays the amount due. Pharoah Co. has no stated return policy. 2. On January 10, D. Laskowski purchases $7,600 of merchandise from Flounder Co., terms 2/10, n/30. Flounder Co. has a stated return policy of 10 days from the date of return and management estimates a return rate at 10%. D. Laskowski returns $500 of merchandise to Flounder on January 15. Flounder Co. charges its customers 1% per month on overdue amounts. On March 10, Flounder records interest on D. Laskowski's past due account. On March 11, D. Laskowski pays his account in full. For item 1, prepare the entries on January 6 and January 16 on Pharoah Co's books. Ignore any inventory and cost of goods sold entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit Credit Date Account Titles and Explanation Jan.6 (To record sale on account.) Jan. 16 (Collection on account within discount period.) For item 2, prepare the entries required on January 10, January 15, March 10, and March 11 on Flounder Company's books. Ignore any inventory and cost of goods sold entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales on account.) (Accrue interest earned.) (Collection on account.)