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29 May, 04:19

Slinky Company purchased merchandise on June 10, 2021, at a price of $26,000, subject to credit terms of 4/10, n/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system. Required: 1. Prepare the journal entry to record the purchase. 2. & 3. Prepare the journal entries to record the appropriate payment if the entire invoice is paid on June 18, 2021 and July 8, 2021.

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  1. 29 May, 07:21
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    The answer is given below;

    Explanation:

    June 10.

    Inventory (26,000*.96) Dr.$24,960

    Accounts Payable Cr.$24,960

    2. If payment is made on June 18,2021

    Accounts Payable Dr.$24,960

    Bank Cr.$24,960

    3. If payment is made on July 8,2021

    Inventory (26,000-24,960) Dr.$1,040

    Accounts Payable Cr.$1,040

    Accounts Payable (1,040+24,960) Dr.$26,000

    Bank Cr.$26,000

    As the credit period of 10 days for discount was not availed, therefore full amount payment will be made.
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