Question
In: Accounting
On December 28, 2018, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system...
On December 28, 2018, Videotech Corporation (VTC) purchased 10 units of a new satellite uplink system from Tristar Communications for $29,000 each. The terms of each sale were 2/10, n/30. VTC uses the net method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2019.
Prepare the necessary journal entries assuming that VTC uses the net method to account for purchase discounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Solutions
Expert Solution
| Date | General Journal | Debit | Credit |
| December 28, 2018 | Inventory ($29,000 ×10 = $290,000 ; $290,000 - 2% = $284,200 | $284,200 | |
| Account payable | $284,200 | ||
| (Being purchse of new satellite uplink system recorded) | |||
| January 6 ,2019 | Account payable | $284,200 | |
| Cash | $284,200 | ||
| (Being payment made for the purchase recorded) | |||
ekkarill92 answered 2 years agoRelated Solutions
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