Bunker Auto Supply purchased merchandise on January 4, 2009, at a price of $70,000, subject to credit terms of 2/10, n30. Bunker uses the gross method for recording purchases and uses a periodic 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 January 11, 2009.
3. Prepare the journal entry to record the balance of the amount due on February 2, 2009.

Question

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The Answer of Bunker Auto Supply purchased merchandise on January 4, 2009, at a price of $70,000, subject to credit terms of 2/10, n30. Bunker uses the gross method for recording purchases and uses a periodic 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 January 11, 2009.
3. Prepare the journal entry to record the balance of the amount due on February 2, 2009.

Bunker Auto Supply Purchased Merchandise on January 4, 2009, at a Price