**Transcription for Educational Website** --- **12.** Megan Rubber and Tire Company sells passenger car tires and uses a perpetual inventory system. On August 31, it purchased $50,000 worth of tires (from Louisiana Tire Sales) and the terms were 2/10 n 30. Prepare the appropriate journal to record the purchase of these tires. **13.** Assume the facts in problem 12. The company paid the invoice on September 2. **14.** Assume the facts in Problem 12. Prepare the appropriate journal entry for Louisiana Tire Sales that pertain to August 31. Hint: You are the seller. **15.** Assume the facts in Problem 13. Prepare the appropriate journal entry. Hint: You are the seller. ---
**Transcription for Educational Website** --- **12.** Megan Rubber and Tire Company sells passenger car tires and uses a perpetual inventory system. On August 31, it purchased $50,000 worth of tires (from Louisiana Tire Sales) and the terms were 2/10 n 30. Prepare the appropriate journal to record the purchase of these tires. **13.** Assume the facts in problem 12. The company paid the invoice on September 2. **14.** Assume the facts in Problem 12. Prepare the appropriate journal entry for Louisiana Tire Sales that pertain to August 31. Hint: You are the seller. **15.** Assume the facts in Problem 13. Prepare the appropriate journal entry. Hint: You are the seller. ---
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:**Transcription for Educational Website**
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**12.** Megan Rubber and Tire Company sells passenger car tires and uses a perpetual inventory system. On August 31, it purchased $50,000 worth of tires (from Louisiana Tire Sales) and the terms were 2/10 n 30. Prepare the appropriate journal to record the purchase of these tires.
**13.** Assume the facts in problem 12. The company paid the invoice on September 2.
**14.** Assume the facts in Problem 12. Prepare the appropriate journal entry for Louisiana Tire Sales that pertain to August 31. Hint: You are the seller.
**15.** Assume the facts in Problem 13. Prepare the appropriate journal entry. Hint: You are the seller.
---
Expert Solution
Working:
Discount = Accounts receivable x rate of discount
= $50,000 x 2%
= $1,000
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