Patty's Pet Store purchased merchandise on October 10, 2018, at a price of $35,000, subject to credit terms of 2/10, n/30. Patty's uses the gross method for recording purchases and uses perpetual inventory system.
Required:
1. Prepare the journal entry to record the purchase.
2. Prepare the journal entry to record the payment of one-half the invoice amount on October 18, 2018.
3. Prepare the journal entry to record the payment of the balance of the amount due on November 8, 2018.

Question

Quizplus · Accepted Answer

The Answer of Patty's Pet Store purchased merchandise on October 10, 2018, at a price of $35,000, subject to credit terms of 2/10, n/30. Patty's uses the gross method for recording purchases and uses perpetual inventory system.
Required:
1. Prepare the journal entry to record the purchase.
2. Prepare the journal entry to record the payment of one-half the invoice amount on October 18, 2018.
3. Prepare the journal entry to record the payment of the balance of the amount due on November 8, 2018.

Patty's Pet Store Purchased Merchandise on October 10, 2018, at a Price