Question

Marsh uses a perpetual inventory system. On December 29, Marsh, Inc. sold inventory for $5,500 on account with terms 2/10 n/30. The customer pays on January 3. What amount will Marsh record in its inventory account on December 29?

Answer 1

Answer:

no no entry will be made

Explanation:

Data provided in the question:

Date on which inventory sold,  December 29

Amount of inventory sold = $5,500

Account terms = 2/10 n/30

Date on which amount is paid, January 3

Now,

Since the date on which the entry is being made (i.e December 29) is before the payment is actually made (i.e January 3). Therefore, no no entry will be made in its inventory account