Nelson Company bought inventory for $50,000 on terms of 2/15, n/60. It pays for the first
$37,500 of inventory purchased within the discount period and pays for the remaining $12,500
two months later.
1(a). Prepare the journal entries to record the purchase and the payment under the gross price method.
For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
To record inventory purchase.
To record payment of three-fourths of inventory purchase
within the discount period.
Inventory (or Purc
To record invento
To record payme