Business, 10.03.2020 03:39 claudia3776

Goods costing $2,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18, a $200 credit memo is received from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period using a perpetual inventory system.

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The journal entries that take place on July 24 for purchase of goods worth $2000 where $200 has been paid will have effects into the bills payable account, inventory account and cash account.

There will be a debit in the bills payable account amounting to $1800 and inventory will be credited with $36 and the cash account will get credited with $1764.

The golden rules of accounting suggest that the for real accounts suggest that "Debit what comes in, Credit what goes out". Owing to this rule the cash account has been debited as the expense for the goods has been accrued.Inventory has also been credited as there is a 2% trade discount offered for such purchase and the goods account experiences a debit effect in the books of journal entries.The journal entries regarding the above purchase as on 24th July are shown with an image attached with this explanation. Please refer to them for journal entries.

Hence, the journal entries will have effects into the bills payable account, inventory account and cash account.

To know more about journal entries, refer the link below.

link

Answer from: frankcaroccio0203

Explanation:

The journal entry is as follows

Account payable A/c Dr $1,800

To Merchandise Inventory A/c $36

To Cash A/c $1,764

(Being the amount due is paid)

The computation is shown below:

For Account payable

= $2,000 - $200

= $1,800

For Merchandise inventory

= ($2,000 - $200) × 2%

= $36

And, the remaining balance is credited to the cash account

Goods costing $2,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18

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Goods costing $2,000 are purchased on account on July 15 with credit terms of 2/10, n/30. On July 18...

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