Question

How can I calculate discounts lost?

Required Information [The following information applies to the questions displayed below.) Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October Oct. 2 Purchased merchandise at a $3,000 price ($2,940 net), invoice dated October 2, terms 2/10, n/30. 10 Returned $500 ($490 net) of merchandise purchased on October 2, and debited its accounts payable for that amount. 17 Purchased merchandise at a $5,400 price ($5,292 net), invoice dated October 17, terms 2/10, n/30. 27 Paid for the merchandise purchased on October 17, less the discount. 31 Paid for the merchandise purchased on October 2. (6) Prepare entries to record the above transactions assuming that Piere Imports records invoices at net amounts. View transaction list View Journal entry worksheet No Date General Journal Debit Credit 1 Oct 02 2,940 Merchandise inventory Accounts payable 2,940 2 Oct 10 490 Accounts payable Merchandise inventory 490 3 Oct 17 5,292 Merchandise Inventory Accounts payable 5,292 4 Oct 27 Accounts payable Cash 5,292 5,292

Answer 1

Journal entries

No	Date	General Journal	Debit	Credit
1	Oct 02	Merchandise inventory	2940
		Account payable		2940
2	Oct 10	Account payable	490
		Merchandise inventory		490
3	Oct 17	Merchandise inventory	5292
		Account payable		5292
4	Oct 27	Account payable	5292
		cash		5292
5	Oct 31	Account payable	2940
		Merchandise inventory	60
		Cash		3000