Question
Prepare the entries on Tamarisk, Inc.’s books related to the transactions that occurred on January 10, February 12, and March 10. (Omit cost of goods sold entries.) (Round answers to 0 decimal places, e.g. 825. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
1. On January 10, Molly Amise uses her Tamarisk, Inc. credit card to purchase merchandise from Tamarisk, Inc. for $2,000. On February 10, Molly is billed for the amount due of $2,000. 2. On February 12, Molly pays $1,000 on the balance due. 3. On March 10, Molly is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. Ch8 Post-Lecture Assignment How to Take a Screenshot on Your Mac Chegg Study | Guided Solutions and Study H Watch The Walking Dead: Season 8 Online the walking dead season 8 free onine Not found à counter Done Ch8 Post-Lecture Assignment Spring 2018 Home Kimmel, Financial Accounting, 8e Help I System Announcements Assignments Discussions Grades People Pages Files Syllabus Quizzes Modules Conferences Collaborations Chat My Media Media Gallery Mahara Through NTER VERSION NEXT Dashboard ASSIGNMENT RESOURCES Exercise 8-2 Ch8 PostLecture Brief Exercise 8-1 Your answer is partially correct. Try again. Brief Exercise 8-2 Courses 1. On anuary 10, Molly Amise uses her Tamarisk, Inc. credit card to purchase merchandise from Tamarisk, Inc. for $2,000. On February 10, Molly is billed for the amount due of $2,000 2. On February 12, Molly pays $1,000 on the balance due 3, on March 10, Molly is billed for the amount due, including interest at 2% per month on the unpaid balance as of February 12. Exercise 8-4 Exercise 8-5 (Part Level 13 Prepare the entries on Tamarisk, Inc.'s books related to the transactions that occurred on January 10, February 12, and March 10. (Omit cost of goods sold entries.) (Round answers to 0 decimal places, e.g. 825. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Exercise 8-10 Exerrise 8-12 No. Date Account Titles and Explanation Debit Credit 1. TJan, 10 2000 Help objective Sales Revenue 2000 2. Feb. 12Cash 1000 Accounts Receivable 1000 Mar. 10 Recevable 1.389 Interest Revenue 1.389 Moodle My Career Purchase Course Question Attempts: 4 of 5 used SAVE FOR LATER SUBMIT ANSWER Materials
Explanation / Answer
Interest revenue to be recorded on March 10, should be calculated as follows:
Unpaid balance as of February 12 = $1,000
Interest rate = 2% per month
Interest revenue = $1,000 x 2% = $20
The journal entry to be prepared on March 10, is as follows:
Date Account Titles and Explanation Debit Credit Mar. 10 Accounts Receivable 20 Interest Revenue 20