Prepare journal entries to record each of the following
transactions. The company records purchases using the gross method
and a perpetual inventory system.
Aug. | 1 | Purchased merchandise with an invoice price of $63,000 and credit terms of 3/10, n/30. | ||
Aug. | 11 | Paid supplier the amount owed from the August 1 purchase. |
Journal entry worksheet
Note: Enter debits before credits.
|
Term 3/10 means, if the company paid cash within 10 days, they will get a cash discount of 3%
Date | General Journal | Debit | Credit |
Aug-01 | Merchandise inventory | $ 63,000 | |
Accounts payable | $ 63,000 | ||
Aug-11 | Accounts payable | $ 63,000 | |
Merchandise inventory ($63,000*3%) | $ 1,890 | ||
Cash | $ 61,110 |
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