On February 20,20A,Ross Sound Company purchased $10,000 of stereo equipment for resale on credit,subject to the terms 3/15,n/30.The company records all purchases using the gross method.The periodic inventory system is used.If the company paid for these goods on March 20,the entry made to record the payment should include which of the following?

Question

Quizplus · Accepted Answer

Since the payment was made after the discount period, the full amount of $10,000 is due, so a $10,000 debit to Trade payables is needed to clear the liability.

On February 20,20A,Ross Sound Company Purchased $10,000 of Stereo Equipment