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
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