Recording Cash Discounts Schrand Corporation purchased materials from a supplier that offers credit terms of 2/15,...

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Recording Cash Discounts Schrand Corporation purchased materials from a supplier that offers credit terms of 2/15, n/60. It purchased $10,000 of merchandise inventory from that supplier on January 20. a. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier applying the net-of-discount method. Date Account Jan. 20 To record purchase of inventory Feb. 15 Debit Credit To record cash payment to supplier. b. Set up the necessary T-accounts and post the journal entries to the T-accounts. Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. Cash Inventory Cost of goods sold Interest expense, discounts lost Accounts payable Recording Cash Discounts Schrand Corporation purchased materials from a supplier that offers credit terms of 2/15, n/60. It purchased $10,000 of merchandise inventory from that supplier on January 20. a. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier applying the net-of-discount method. Date Account Jan. 20 To record purchase of inventory Feb. 15 Debit Credit To record cash payment to supplier. b. Set up the necessary T-accounts and post the journal entries to the T-accounts. Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account. Cash Inventory Cost of goods sold Interest expense, discounts lost Accounts payable