Chrome File Edit View History Bookmarks Profiles Tab Window Help G US 74% ~ Q 8 Wed Dec 11 1:08 PM 2248-ACCT-3311-004-FINAN X MBC Exam Earn-back Assignment | X Course Hero X + mybusinesscourse.com/course/29285/content/chapter/0/module/quiz/565564/view Google Lens M Gmail YouTube Netflix . Outlook Current Students -... Dashboard MyMav - Student All Bookmarks Course Content / HOME / Exam Earn-back Assignment Exam Earn-back Assignment July 6: Purchase of inventory with a list price of $42,000, a trade discount of 20% (which buyers get with certainty), and with terms 2/10, n/30. July 8: Returned $3,000 of inventory (damaged in shipment) to the supplier (the $3,000 is the value after the trade discount). July 13: Paid $14,700 ( $15,000 of inventory less a purchase discount of 2%, or $900) on account. July 31: Paid $15,600 cash to the supplier. Required Prepare journal entries prior to a physical inventory for these transactions assuming the company uses the periodic inventory system and the net method for recording purchase discounts. Date Account Dr. Cr. July 6 Purchases V 32,928 0 Accounts Payable 0 32,928 To record purchase of inventory. July 8 Accounts Payable 2,940 OV Purchase Returns and Allowances 2,940 To record inventory return July 13 Accounts Payable 14,700 Cash 14,700 To record payment within discount period July 31 Accounts Payable 15,312 O X Purchase Discounts 288 O X Cash 0 15,600 To record payment after discount period