question archive Prepare journal entries to record each of the following transactions
Prepare journal entries to record each of the following transactions
Subject:FinancePrice:2.87 Bought7
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 $60,000 and credit terms of 3/10, n/30. os 4-6 Recording purchases and
11 Paid supplier the amount owed from the August 1 purchase. P1
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Answer:
Journal entry
| date | account and explanation | Debit | Credit |
| Aug 1 | Inventory | 60000 | |
| Account payable | 60000 | ||
| (To record purchase) | |||
| Aug 11 | Account payable | 60000 | |
| Cash (60000*97%) | 58200 | ||
| Inventory | 1800 | ||
| (To record amount paid) | |||
