Merchandise was purchased on account from Jacob’s Distributors o

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 the discount period.
3. Journalize the purchase of the merchandise on May 17 in a general journal. Journalize the payment on May 27 (within the discount period).

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  • CreatedDecember 21, 2011
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