Ask Question
14 December, 13:44

During January 2016, Wells Corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the remaining balance. This transaction will be recorded as:

+1
Answers (1)
  1. 14 December, 17:26
    0
    Inventory $200,000

    Cash $50,000

    Notes payable $150,000

    Explanation:

    Data provided in the question:

    Cost of the inventory purchased = $200,000

    Amount paid in cash = one-fourth

    = one-fourth of $200,000

    = $50,000

    For the remaining balance signed a note i. e = $200,000 - $50,000

    = $150,000

    Now,

    This transaction will be recorded as:

    Inventory $200,000

    Cash $50,000

    Notes payable $150,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “During January 2016, Wells Corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the remaining ...” 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