Question: On December 28 2011 Videotech Corporation VTC purchased 10 u
On December 28, 2011, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the gross method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2012. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.
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