Paying a supplier within the discount period

Transaction

A store bought merchandise on account for $5,000.00, terms 2/10, n/30, and recorded the purchase at the invoice price. It pays the supplier by check within the discount period.

Assumptions: This store uses the periodic inventory system: purchases are recorded in Purchases at the invoice price, and discounts taken are recorded in Purchase Discounts.

Accounts

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Debit

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Credit

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Debits $0.00Credits $0.00