Question: Tech Data Corp. uses a perpetual inventory system. The following activities occurred during May: May 1 - Tech Data purchased $100,000 worth of inventory, on

Tech Data Corp. uses a perpetual inventory system. The following activities occurred during May:

  • May 1 - Tech Data purchased $100,000 worth of inventory, on credit terms 2/10 n/30.
  • May 3 - Tech Data returned $20,000 worth of that inventory to the supplier.
  • May 18- Tech Data paid for the inventory, taking advantage of all available discounts.

Required: Prepare the journal entries to record the transactions above using the gross method.

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