Question

Travis Company purchased merchandise on account from a supplier for $10,000, terms 2/10, net 30. Travis Company paid for the merchandise within the discount period. Under a perpetual inventory system, journalize these transactions. If an amount box does not require an entry, leave it blank. a. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 b. fill in the blank 8 fill in the blank 9 fill in the blank 11 fill in the blank 12

Answer 1

Answer:

a. Dr Inventory $10,000

Cr Accounts payable $10,000

b. Dr Accounts payable $10,000

Cr Cash $9,800

Cr Inventory $200

Explanation:

Preparation of the Journal entries Under a perpetual inventory system,

a. Dr Inventory $10,000

Cr Accounts payable $10,000

( To record purchase of merchandise)

b. Dr Accounts payable $10,000

Cr Cash $9,800

($10,000-$200)

Cr Inventory $200

(2%*$10,000)

( To record payment for merchandise)

Discount amount = Amount due x Discount percentage

Discount amount= 10,000 x 2/10

Discount amount= $200