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lutik1710 [3]
2 years ago
5

Goods costing $2,300 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, a $100 credit memo is rece

ived from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period using a perpetual inventory system
Mathematics
1 answer:
vova2212 [387]2 years ago
8 0

The journal entry on July 24 to record payment of the balance due is $2156

<h3>What is Discount Period ?</h3>

Discount period is the time period given by the supplier to the consumer for getting discount if the payment is made by the due date.

                                                                          Debit                          Credit

Accounts payable (2300-100 )                       2200

Cash (2200 - (2200* 2%))                                                                   2156

Purchase Discount / Merchandise Inventory                                     44

To record the payment of accounts within discount period

Amount Paid = 2300 - 200 -44 = 2156

To know more about Discount Period

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