Marx Corp. purchases 135 fax machines on credit from amanufacturer on April 7 at a price of $290 per machine.Terms of the purchase are 4/10, n/20 with an invoice dateof April 7. Marx Corp pays in full for the fax machines onApril 17. Create the journal entries for Marx Corp. torecord:A. the initial purchaseB. the subsequent payment on April 17If an amount box does not require an entry, leave it blank.Assume the perpetual inventory system is used.Apr. 7Apr. 17Accounts PayableAccounts ReceivableMerchandise InventorySales DiscountsSalesII IIIII II

Journal entries refers to the process of recording the financial transactions of a company in its accounting books for a particular period of time.Preparing the journal entries as follows: Max Corporation Date Particulars Debit Credit 7 April Purchases Accounts payable (135×$290) (Being purchases recorded) $39,150 $39,150 17 April Accounts payable Purchase discount ($39,150×4%) Cash ($39,150×96%) (Being payments to Accounts payable recorded) $39,150 $1,566 $37,584

Business

Accounting

Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $290 per machine. Terms of the purchase are 4/10, n/20 with an invoice date of April 7. Marx Corp pays in full for the fax machines on April 17. Create the journal entries for Marx Corp. to record:

Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $290 per machine. Terms of the purchase are 4/10, n/20 with an invoice date of April 7. Marx Corp pays in full for the fax machines on April 17. Create the journal entries for Marx Corp. to record:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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