Question

Goods costing $1,900 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, the purchaser receives a $300 credit from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period.

Question 11 Goods costing $1,900 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, the purchaser receives a $300 credit from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit July 24

Answer 1

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Question-111 solutions T Date Account Titles and Explanation Debit (I) elesit. () July zu account payable ($1,900-$300) $1,600 Cash ($1600-[$1,1600x213) $1,568 Purchase Discounts ($1,60072%). . . $.32 (to record payment of accounts payable within the Discount period) Essplanation calculation of amount paid. purchase on credit $1,900 Less: purchase returns (Damaged goods) & 300) $1,600 Lessi: cash Discount ($160042%) & Amount paid. $1;568