Chapter 12, Problem 5EA

Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises.

A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for $10 each. Credit terms are 2/10, n/60 from the invoice date of April 7.

B. On April 15, Tolbert pays the amount due in cash to the supplier.