A company purchased inventory for $150,000 on credit. The company has a 10% discount on purchases if paid within 30 days. The company paid within the discount period. What is the journal entry to record this transaction, considering the discount?

A company purchased inventory for $150,000 on credit. The company has a 10% discount on purchases if paid within 30 days. The company paid within the discount period. What is the journal entry to record this transaction, considering the discount?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 10Q: If a retailer purchased inventory in the amount of $750, terms 2/10, n/60, returned $30 of the...

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Question

Please provide the solution to this general accounting question with accurate financial calculations.

A company purchased inventory for $150,000 on credit. The
company has a 10% discount on purchases if paid within 30 days. The
company paid within the discount period. What is the journal entry
to record this transaction, considering the discount?

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