Question: On December 28 2013 Videotech Corporation VTC purchased 10 units

On December 28, 2013, 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, 2014. Prepare the journal entries on December 28 and January 6 to record the purchase and payment.

Sale on SolutionInn
  • CreatedDecember 23, 2013
  • Files Included
Post your question