House of Deals Ltd. bought a machine, which had a list price of $20,000 subject to terms of 2/10, net/30.
(A) Give the entry to record the acquisition, assuming no cash was paid on acquisition date.
(B) Give the entry to record the payment for the machine, assuming payment is made within the 10-day discount period.
(C) Give the entry to record the payment for the machine, assuming payment is made after the 10-day discount period.

Question

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The Answer of House of Deals Ltd. bought a machine, which had a list price of $20,000 subject to terms of 2/10, net/30.
(A) Give the entry to record the acquisition, assuming no cash was paid on acquisition date.
(B) Give the entry to record the payment for the machine, assuming payment is made within the 10-day discount period.
(C) Give the entry to record the payment for the machine, assuming payment is made after the 10-day discount period.