On January 10, Andrew Farley uses his Paltrow Co. credit card to purchase merchandise from Paltrow Co. for $17,500. On February 10, Farley is billed for the amount due of $17,500. On February 12, Farley pays $8,750 on the balance due. On March 10, Farley is billed for the amount due, including interest at 4% per month on the unpaid balance as of February 12. Prepare the entries on Paltrow Co.’s books related to the transactions that occurred on January 10, February 12, and March 10.

Answer and Explanation:

As per the data given in the question,

Entries on Paltrow Co.'s books :

Jan-10   Accounts receivable A/c Dr. $17,500

              To Sales revenue A/c. $17,500

               (Being sales on account is recorded)

Feb-12     Cash A/c Dr. $8,750

               To Accounts receivable A/c. $8,750

               (Being cash receipt on credit sales is recorded)

Mar-10    Accounts receivable A/c Dr. $350

               To interest revenue A/c. $350

                ($17,500 - $8,750 = $8,750 × 4% = 350)

            ( Being due amount with interest is recorded)

explanation:

a gas is not used in hydraulic machines as the fluid because gas is easily compressible and so if a gas is used, the energy would mostly go into compressing a gas. therefore a liquid is used in hydraulic machines as the fluid.

the specific actions take by the fed. what the fed was attempting to do by taking these actions. the result of the actions taken by the fed