You can put this solution on YOUR website!
This is a math help website, not an accounting help website.
Anyway, for March 9, Lynda Co. will get a 4% discount, since Lynda Co paid within the discount period (10 days). Therefore,
Dr._____Sales Returns, Discounts and Allowances (or whichever account sales discounts are debited to): 200
Cr._____Lynda Co.: 5,000
Since it only had one credit card customer who/that owes $200 (March 15 credit sale), monthly interest will be $2 (1% of $200). The March 31 journal entry will be:
Dr._______Accounts Receivable - Customer’s Credit Card Account: $2
Cr.______Interest Income: $2
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