Question

Emerald Co. uses a perpetual inventory system and records purchases of merchandise at net cost. The company recently purchased 200 compact discs at an invoice price of $6,000 and terms of 2/10, n/30. Half of these discs had been mislabeled and were returned immediately to the supplier. The journal entry to record payment of this invoice after the discount period has expired will include a _________?

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Account payable A/c Dr $3,000

      To Cash A/c $3,000

(Being payment is made is recorded)

We debited the account payable account and credited the cash account so that the correct posting can be done.

Since the half of the disk is returned i.e $3,000 which come after multiplying the $6,000 by 50%