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record purchase discounts of inventory using a perpetual system. Shankar company uses a perpetual system to...

record purchase discounts of inventory using a perpetual system. Shankar company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000, with terms 3/10, n/30. On February 10, the company pays on account for the inventory. Record the inventory purchase on February 2 and the payment on February 10
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Answer #1

No.

Date

Account titles and explanation

Debit

Credit

1

February 2

Inventory

40000

Accounts payable

40000

(to record inventory purchase)

2

February 10

Accounts payable

40000

Inventory (40000*3%)

1200

Cash

38800

(to record payment)
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