On January 6 Whitson Co. sells merchandise on account to Garcia Inc. for $7000 terms 2/10 n/30. On January 16 Garcia Inc. pays the amount due. Prepare the entries on Whitson's books to record the sale and related collection.
(b) On January 10 Jill Hoyle uses her Berkman Co. credit card to purchase merchandise from Berkman Co. for $9000. On February 10 Hoyle is billed for the amount due of $9000. On February 12 Hoyle pays $4000 on the balance due. On March 10 Hoyle is billed for the amount due including interest at 2% per month on the unpaid balance as of February 12. Prepare the entries on Berkman Co.'s books related to the transactions that occurred on January 10 February 12 and March 10.

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The Answer of On January 6 Whitson Co. sells merchandise on account to Garcia Inc. for $7000 terms 2/10 n/30. On January 16 Garcia Inc. pays the amount due. Prepare the entries on Whitson's books to record the sale and related collection.
(b) On January 10 Jill Hoyle uses her Berkman Co. credit card to purchase merchandise from Berkman Co. for $9000. On February 10 Hoyle is billed for the amount due of $9000. On February 12 Hoyle pays $4000 on the balance due. On March 10 Hoyle is billed for the amount due including interest at 2% per month on the unpaid balance as of February 12. Prepare the entries on Berkman Co.'s books related to the transactions that occurred on January 10 February 12 and March 10.