On October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One half of the bill was paid on October 24, and the rest of the bill was paid on October 31.
Assume that the seller has agreed to grant discounts on partial payments.
?
Required:
Prepare journal entries for October 24 using the:
(1)gross price method(2)net price method
What will be an ideal response?
| (1) | Accounts Payable | 21,000 | ||
| Purchases Discounts Taken | 210 | |||
| Cash | 20,790 | |||
| (2) | Accounts Payable | 20,790 | ||
| Cash | 20,790 | |||
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