Patty's Pet Store purchased merchandise on October 10, 2013, 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, 2013.
3. Prepare the journal entry to record the payment of the balance of the amount due on November 8, 2013.
Correct Answer:
Verified
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