Merchandise was purchased on account from Grants Distributors on June 12. The purchase price was $5,000, less
Question:
Merchandise was purchased on account from Grant’s Distributors on June 12. The purchase price was $5,000, less a 10% trade discount and credit terms of 3/10, 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 June 12 and the payment on June 22 (within the discount period) in a general journal.
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1 Gross amount 5000 Less 10 trade discount 500 Net amo...View the full answer
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