Question

1.) Complete the journal entries for the following transactions:

On July 1, 2019, ABC Company purchased merchandise on account for $10,000, with terms 1/10, n/30. The entry would include a debit to (inventory, accounts payable) a.

and a credit to (inventory, accounts payable) b.

for $10,000.(inventory, accounts payable)c.

On July 8, 2019, ABC Company paid for the above purchase. The entry would include a debit to (inventory, accounts payable)d.

for (9900,10000) e.

, a credit to (inventory, cash) f.

for (9900,10000) g.

and a credit to (inventory, cash) h.

for . (900,100) I.

Answer 1

Journal Entries:

Date	General journal	Debit	Credit
July 1	Inventory	$10000
	Acounts payable		$10000
	(To record purchase of Merchandise on Credit)
Date	General journal	Debit	Credit
July 8	Accounts Payable	$9900
	Discount	$100
	Cash		$10000
	On payment of Accounts payable)

Note: Discount on Merchandise is 1% if the amount is paid within 10 days and the company paid within the 10 days so discount amount = $10000*1% = $100