On December 15, 2022, ABC Company purchased merchandise from DEF Company with trade discounts of 10% and 15%. The list price is P 1,000,000 with payment terms of 2/15, n/45. On December 30, ABC Company paid DEF Company. Assume the company uses periodic method to account for their inventories. Prepare the journal entry on the payment of purchase under gross method on December 30, 2022.
On December 15, 2022, ABC Company purchased merchandise from DEF Company with trade discounts of 10% and 15%. The list price is P 1,000,000 with payment terms of 2/15, n/45. On December 30, ABC Company paid DEF Company. Assume the company uses periodic method to account for their inventories. Prepare the journal entry on the payment of purchase under gross method on December 30, 2022.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 15, 2022, ABC Company purchased merchandise from DEF Company with trade discounts of 10% and 15%. The list price is P 1,000,000 with payment terms of 2/15, n/45. On December 30, ABC Company paid DEF Company. Assume the company uses periodic method to account for their inventories.
Prepare the
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