during the month of march qni corporation made the following 252588

During the month of March, QNI Corporation made the following credit sales and had the Following related collections. QNI prepares financial statements for the first quarter of operations at the end of March.

March 3Sold goods to AAA company for a gross price of $1,400.

The terms of the sale were 2/10, n/30.

March 8Sold goods to BBB company for a gross price of $800.

The terms of the sale were 2/10, n/30.

March 11Received full payment from AAA.

March 28 Received full payment from BBB.

March 29 Sold goods t CCC company for a gross price of S1,800.

The terms of the sale were 2/10, n/30.

REQUIRED:

a. Prepare the journal entries to record these transactions.

b. Note that BBB missed the discount period by ten days. Compute the annual interest rate BBB paid for the use of the $800 for that ten-days. Compute the annual interest rate BBB paid for the use of the $800 for that ten-day period. Assume that BBB can borrow money from the bank at 9 percent, what should BBB have done differently?

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