The following are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

a. On January 6, Monty Co. sells merchandise on account to Pryor Inc. for $7,700, terms 2/10, n/30. On January 16, Pryor Inc. pays the amount due. Prepare the entries on Montys books to record the sale and related collection. (Omit cost of goods sold entries.)

b. On January 10, Andrew Farley uses his Sunland Co. credit card to purchase merchandise from Sunland Co. for $7,600. On February 10, Farley is billed for the amount due of $7,600. On February 12, Farley pays $6,000 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 Sunland Co.s books related to the transactions that occurred on January 10, February 12, and March 10. (Omit cost of goods sold entries.)

The following are two independent situations. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) (a) On January 6, Monty Co. sells merchandise on account to Pryor Inc. for $7,700, terms 2/10,n/30. On January 16, Pryor Inc. pays the amount due. Prepare the entries on Monty's books to record the sale and related collection. (Omit cost of goods sold entries.) (b) On January 10, Andrew Farley uses his Sunland Co.credit card to purchase merchandise from Sunland Co.for $7,600. On February 10, Farley is billed for the amount due of $7,600. On February 12, Farley pays $6,000 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 Sunland Co's books related to the transactions that occurred on January 10, February 12, and March 10. (Omit cost of goods sold entries.) No. Date Account Titles and Explanation Debit Credit (a) Jan. 6 Accounts Receivable 7700 Sales Revenue 7700 Jan. 16 Cash Sales Discounts Accounts Receivable 7700 (b) Jan. 10 Accounts Receivable 7600 Sales Revenue 7600 Feb. 12 Cash 6000 Accounts Receivable 6000 Mar 10 Accounts Receivable Interest Revenue