Barbara's Boats uses the periodic inventory system and the net method of accounting for purchases. The company had the following transactions during January:January 6:Purchased $10,000 of inventory. The seller's credit terms are 2/10, n/30.January 31:Due to an oversight, the invoice was not paid within the discount period. Full payment was made on January 31.Prepare journal entries to record each of the preceding transactions.
What will be an ideal response?
| January 6: | Purchases…………….. | 3,920 |
| ? | Accounts Payable…………… | 3,920 |
| January 31: | Accounts Payable…………………. | 3,920 |
| Purchases Discounts Lost | 80 |
| ? | Cash………………………... | 4,000 |
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