Martin Corporation used the gross method of recording purchases, the voucher system and the periodic inventory method. A purchase of $10,000, 2/15, n30 would be recorded as:

Question

Quizplus · Accepted Answer

Under the gross method of recording purchases and using a voucher system, the initial purchase is recorded at the gross amount of the invoice ($10,000), with a debit to Purchases and a credit to Vouchers Payable, reflecting the company's obligation to pay the vendor. The discount (2/15, n30) is accounted for only if payment is made within the discount period.

Martin Corporation Used the Gross Method of Recording Purchases, the Voucher