This Question: 2 pts 2 of 2 (1 complete) This Test4 $60,000 of sportswear on acc

Question

This Question: 2 pts 2 of 2 (1 complete) This Test4 $60,000 of sportswear on account from Williams' Store, Inc., on October 1, 2016. Credit terms are 1/10, net 45. Play Williams' Store, Inc., on October 8, 2016, 1. Journalize the transactions for Play more on October 1,2016, and October 8,2016. 2. What was the final cost of this inventory for Play more? entnes. October 1: Purchases $60,000 of sportswear on account. Journal Entry Accounts Date Debit Credit Oct 1 October 8: Paid Williams Store, Inc Choose from any list or enter any number in the input fields and then continue to the next question

Explanation / Answer

1)

2)Final cost =Purchase cost -Discount received

       = 60000-600

        = $ 59400

Date Account Debit credit October 1 2016 merchandise inventory 60000 Accounts payable 60000 [Inventory purchased on account] October 8 2016 Accounts payable 59400 merchandise inventory [60000*.01] 600 cash 60000 [Paiid to william 'store inc]

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