inclass 3 - 1. May 10, the company purchased goods from J...

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Unformatted text preview: 1. May 10, the company purchased goods from J co. for $90,000 terms 2/10 n/30. Purchases and AP are recorded at net amounts. Invoice paid May 18. 2. June 1, the company purchased equipment for $120,000 from Nolan co. paying $40,000 in cash and giving a one year, 9% note for balance. 3. September 30, company discounted at 10% its $240,000, one year zero interest bearing note at First State Bank. a) Prepare journal entries necessary to record the transactions above using appropriate dates (1) The recording is at net amount. There is a discount of 2%, so the discount amount is 90,000X2%= 1,800 and the net amount is 90,000-1,800 = 88,200 The entry to record the purchase is May 10 Purchases/Inventory Dr ................................................................... 88,200 Accounts Payable Cr.......................................................................... 88,200 The entry to make the payment is May 18 Accounts Payable Dr............................................................................. 88,200May 18 Accounts Payable Dr....
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inclass 3 - 1. May 10, the company purchased goods from J...

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