Please make the following journal entries. Mostly wondering if they are made und

Question

Please make the following journal entries. Mostly wondering if they are made under the discounted period or not?
1/08/18 Purchased $10,000 of inventory-guitars from Gary’s Guitars on account. The vendor extended credit terms are 2/15. n/30
1/18/18 Purchased additional guitars on account for $3,500 from Gary’s Guitars. Credit terms are 2/15, n/30.
1/23/18 Paid the balance due to Gary’s Guitars. There are two invoices; one on 01/08/18 and the other on 01/18/18. Make one journal entry for both transactions. Please make the following journal entries. Mostly wondering if they are made under the discounted period or not?
1/08/18 Purchased $10,000 of inventory-guitars from Gary’s Guitars on account. The vendor extended credit terms are 2/15. n/30
1/18/18 Purchased additional guitars on account for $3,500 from Gary’s Guitars. Credit terms are 2/15, n/30.
1/23/18 Paid the balance due to Gary’s Guitars. There are two invoices; one on 01/08/18 and the other on 01/18/18. Make one journal entry for both transactions. Please make the following journal entries. Mostly wondering if they are made under the discounted period or not?

1/18/18 Purchased additional guitars on account for $3,500 from Gary’s Guitars. Credit terms are 2/15, n/30.
1/23/18 Paid the balance due to Gary’s Guitars. There are two invoices; one on 01/08/18 and the other on 01/18/18. Make one journal entry for both transactions.

Explanation / Answer

Note : 2/15. n/30 , means that 2 % discount is available only when the payment is made within 15 days . For 15 days calculation we need to include the date of purchase or invoice date as day 1 .

Thus for purchase made on 1/08/18 , the payment must be made on or before 1/22/18. to avail discount

Similarly ,  for purchase made on 1/18/18 , the payment must be made on or before 02/01/18. to avail discount

Therefore, as the full payment to Gary's Guitars is made on 1/23/18 , we will get discount on purchase made on 1/18/18 only.

Journal Entries

Date Particulars Debit ($) Credit ($) 1/08/18 Merchandise inventory 10,000 Accounts payable 10,000 [ To record purchase of inventory on account] 1/18/18 Merchandise inventory 3,500 Accounts payable 3,500 [ To record purchase of inventory on account] 1/23/18 Accounts payable [ 10,000 + 3,500 ] 13,500 Cash 13,430 Discount on purchase [ 3,500 * 2 %] 70 [ To record ayment made to Gary’s Guitars for inventory purchased ]

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