Serene Company purchases fountains for its inventory from Kirkland Inc. The following transactions take place during the current year.
A. On July 3, the company purchases thirty fountains for $1,200 per fountain, on credit. Terms of the purchase are 2/10, n/30, invoice dated July 3.
B. On August 3, Serene does not pay the amount due and renegotiates with Kirkland. Kirkland agrees to convert the debt owed into a short-term note, with an 8% annual interest rate, payable in two months from August 3.
C. On October 3, Serene Company pays its account in full.
Record the
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