Trade Discount and Cash Discounts
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter11: Accounting For Purchases And Cash Payments
Section: Chapter Questions
Problem 9SPB: PURCHASES TRANSACTIONS Ann Benton, owner of Bentons Galleria, made the following purchases of...
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![Trade Discount and Cash Discounts
Merchandise was purchased on account from Jacob's Distributors on May 17. The purchase price was $2,000, less a 10% trade discount and credit terms of 2/10, n/30.
1. Calculate the net amount to record the invoice, less the 10% trade discount.
2. Calculate the amount to be paid on this invoice within thé discount period.
$4
3. Journalize the purchase of the merchandise on May 17 in a general journal. Journalize the payment on May 27 (within the discount period).
Page:
DATE
ACCOUNT TITLE
DOC. POST.
DEBIT
CREDIT
NO. REF.
20--
1
May 17
1
2
Purchased merchandise
4 27
4
5
6.
6.
Paid invoice within discount period
7
00000
00 000
3.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3aff424b-0e96-4e90-b1d6-dc40303839e0%2F7546acbf-b0e3-49c9-b5b9-e0928b8eaf51%2Fjawa8r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Trade Discount and Cash Discounts
Merchandise was purchased on account from Jacob's Distributors on May 17. The purchase price was $2,000, less a 10% trade discount and credit terms of 2/10, n/30.
1. Calculate the net amount to record the invoice, less the 10% trade discount.
2. Calculate the amount to be paid on this invoice within thé discount period.
$4
3. Journalize the purchase of the merchandise on May 17 in a general journal. Journalize the payment on May 27 (within the discount period).
Page:
DATE
ACCOUNT TITLE
DOC. POST.
DEBIT
CREDIT
NO. REF.
20--
1
May 17
1
2
Purchased merchandise
4 27
4
5
6.
6.
Paid invoice within discount period
7
00000
00 000
3.
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