# SOLUTION: Presented below are selected transactions of Menge Company. Menge sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold

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 Click here to see ALL problems on Money Word Problems Question 669275: Presented below are selected transactions of Menge Company. Menge sells in large quantities to other companies and also sells its product in a small retail outlet. March 1 Sold merchandise on account to Lynda Company for \$5,000, terms 4/10,/30. March 3 Lynda Company returned merchandise worth \$400 to Menge. March 9 Menge collected the amount due from Lynda Company from the March 1 sale. March 15 Menge sold merchandise for \$200 in its retail outlet. The customer used his Menge credit card. March 31 Menge added 1% monthly interest to the customer’s credit card balance. Prepare journal entries for the transactions above. I Just need journal entry for March 9 and 31. And can you please show how you got the answer. Thank you so much.....Answer by MathTherapy(1817)   (Show Source): 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._____Cash: 4,800 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 Send comments and “thank-yous” to “D” at MathMadEzy@aol.com