During the month of March, QNI Corporation made the following credit sales and had the fol¬ lowing related collections. QNI prepares financial statements for the first quarter of operations at the end of March. March 3 March 8 March 11 March 28 March 29 Sold goods to AAA company for a gross price of $1,400. The terms of the sale were 2/10, n/30. Sold goods to BBB company for a gross price of $800. The terms of the sale were 2/10, n/30. Received full payment from AAA. Received full payment from BBB. Sold goods to CCC Company for a gross price of $1,800, The terms of sale were 2/10, n/30. REQUIRED:

a. Prepare the journal entries to record these transactions.

b. Note that BBB missed the discount period by ten days. Compute the annual interest rate BBB paid for the use of the $800 for that ten-day period. Assuming that BBB can borrow money from the bank at 9 percent, what should BBB have done differently?