connect. ACCOUNTING 2012 Ch. 8 Test Question 8 (c 8. On December 28, 2016, Video
ID: 2573696 • Letter: C
Question
connect. ACCOUNTING 2012 Ch. 8 Test Question 8 (c 8. On December 28, 2016, Videotech Corporation (VTC) purchased 12 units of a new satelite uplink system from Tristar Communications for $25,000 nach The terms of each sale were 2/10, nV30 VTC uses the net method to account for purchase dscounts and a perpetual inventory system VTC paid the net-of-discount Prepare the necessary youmal entries assuming that VTC uses the net method to account for purchase áscounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Mew transaction ist Journal entry worksheet Racor d the inventory purchase on account Note: Enier debits before crets Generat Journal DebitCredit Decembe 28, 2016 Record erery Clear entry Vaw general journal TOSHIBA esc 2 3 4 5 tabExplanation / Answer
Units purchased = 12 units
Cost per unit = $25,000 per unit
Total cost = Units purchased × Cost per unit = 12×25,000 = $300,000
2% discount will be given if paid within 10 days. Since, the payment was made within the stipulated time,
Total cost after discount = 300,000 - 2% × 300,000 = 300,000-6,000 = $294,000
Date General Journal Debit Credit December 28, 2016 Inventory 294,000 Accounts Payable 294,000 [To record purchase of inventory on account (net method)] January 06, 2017 Accounts Payable 294,000 Cash 294,000 [To record cash payment]Related Questions
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