Perpetual System- Recording Purchases and Payments with Discounts Using Net Method Track Bicycles Inc. purchased merchandise inventory on February 1 for $93,500 on account, terms 2/10, n/30. The company maintains a perpetual inventory system and it accounts for purchases using the net method. The amount due to settle the account was paid on February 9. Record the purchases entry on February 1 and the payment entry on February 9. • Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero).
Perpetual System- Recording Purchases and Payments with Discounts Using Net Method Track Bicycles Inc. purchased merchandise inventory on February 1 for $93,500 on account, terms 2/10, n/30. The company maintains a perpetual inventory system and it accounts for purchases using the net method. The amount due to settle the account was paid on February 9. Record the purchases entry on February 1 and the payment entry on February 9. • Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and leave the Dr. and Cr. answers blank (zero).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Perpetual System- Recording Purchases and Payments with Discounts Using Net Method
Track Bicycles Inc. purchased merchandise inventory on February 1 for $93,500 on account, terms 2/10,
n/30. The company maintains a perpetual inventory system and it accounts for purchases using the net
method. The amount due to settle the account was paid on February 9.
Record the purchases entry on February 1 and the payment entry on February 9.
• Note: If a line in a journal entry isn't required for the transaction, select "N/A" as the account name and
leave the Dr. and Cr. answers blank (zero).
Date
Feb. 1
Inventory
Account Name
Accounts Payable
To record the purchase
Feb. 9 Accounts Payable
Inventory
Cash
To record the payment
<
V
Dr.
93,500
93,500
0
0
Cr.
0
93,500 *
0x
1,870 X
91,630
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