Ask Question
13 June, 11:36

Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's (a) purchase and (b) payment. If an amount box does not require an entry, leave it blank. (a) (b)

+5
Answers (1)
  1. 13 June, 14:44
    0
    (a)

    Dr. Inventory $1,500

    Cr. Account Payable $ 1,500

    (b)

    Dr. Account Payable $1,500

    Cr. Discount Income $30

    Cr. Cash $1,470

    Explanation:

    Credit terms of 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.

    Purchase = $1,500

    As payment is made withindiscount period, so the discount will be availed.

    Discount = $1,500 x 2% = $30

    Payment = $1,500 - $30 = $1,470
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers