Chapter 5, Problem 7E

(a)

To determine

Record the purchase of merchandise inventory on account under the terms of 2/10, n/30.

(b)

To determine

Record the journal entry for merchandise return.

(c)

To determine

Record the journal entry for the due amount paid within the discount period of 10 days.

(d)

To determine

Record the journal entry for the due amount paid after the discount period.