On January 4, 2013, Dunbar Company purchased, on credit, 2,000 television sets a

Question

On January 4, 2013, Dunbar Company purchased, on credit, 2,000 television sets at $500 each. Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January 13 and the remaining 80% on February 1.
Prepare the journal entries on Dunbar Company's books, assuming that it uses the net price method to record its merchandise. Dunbar uses perpetual inventory system. On January 4, 2013, Dunbar Company purchased, on credit, 2,000 television sets at $500 each. Terms of the purchase were 2/10, n/30. Dunbar paid for 20% of these sets on January 13 and the remaining 80% on February 1.
Prepare the journal entries on Dunbar Company's books, assuming that it uses the net price method to record its merchandise. Dunbar uses perpetual inventory system.
Prepare the journal entries on Dunbar Company's books, assuming that it uses the net price method to record its merchandise. Dunbar uses perpetual inventory system.

Explanation / Answer

04.01.2016

Purchase a/c Dr. 10,00,000(2000*500)

To accounts payable a/c 1000000

13.01.2016

Accounts payable a/c Dr. 200000 (1000000*20%)

To Cash discount a/c          4000(200000*2%)

To cash a/c                          196000

01.02.2016

Accounts payable a/c Dr 800000

To cash a/c 800000

31.03.2016

Inventory a/c Dr. 996000

Cash discount a/c Dr 4000

To purchase a/c 1000000

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.