velue 20.00 points Exercise 4-3 Analyzing and recording merchandise transactions
ID: 2396276 • Letter: V
Question
velue 20.00 points Exercise 4-3 Analyzing and recording merchandise transactions-both buyer and sell Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $24,000 and credit terms of 3/10, n/60. The merchandise had cost Mesa $16,000, Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system 1(a) Prepare entries that the buyer should record for the purchase. View transaction list ournal entry worksheet Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $24,000 and credit terms of 3/10, n/60 Note: Enter debits before credits erchandise inventory 24,000 T20 Accounts payable 23,280 Record entry Clear entry View general journal 8 4Explanation / Answer
Date
explanation
debit
credit
Inventory
24000
accounts payable
24000
accounts payable
24000
cash
23280
discount on accounts payable
720
Savings from discount
720
amount of interest to be paid if payment is made on last day
23280*8%*51/365
260.2258
net savings
459.7742
Date
explanation
debit
credit
Inventory
24000
accounts payable
24000
accounts payable
24000
cash
23280
discount on accounts payable
720
Savings from discount
720
amount of interest to be paid if payment is made on last day
23280*8%*51/365
260.2258
net savings
459.7742
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