On December 28, 2018, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system fromTristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the gross method toaccount for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2019. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.
On December 28, 2018, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system fromTristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the gross method toaccount for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2019. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 14E: On January 5, 2019, ShoeKing Corp. sells for cash 500 pairs of volleyball shoes to FootAction, a...
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On December 28, 2018, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from
Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the gross method to
account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2019. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.
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