On May 1,Anders Company purchased merchandise in the amount of $5,800 from Shilling,with credit terms of 2/10,n/30.Anders uses the perpetual inventory system.The journal entry or entries that Anders will make on May 1 is:

Question

Quizplus · Accepted Answer

The journal entry to record the purchase on credit would be:
Inventory 5,800 
Accounts Payable 5,800

Since credit terms are 2/10, n/30, a discount of 2% is available if paid within 10 days. If Anders chooses to take advantage of the discount, the journal entry would be:
Accounts Payable 5,664 (5,800 - 2% discount of 116) 
Inventory 116 
Cash 5,548 (5,664 - 2% discount of 116)

On May 1,Anders Company Purchased Merchandise in the Amount of $5,800