velue 20.00 points Exercise 4-3 Analyzing and recording merchandise transactions

Question

velue 20.00 points Exercise 4-3 Analyzing and recording merchandise transactions-both buyer and sell Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $24,000 and credit terms of 3/10, n/60. The merchandise had cost Mesa $16,000, Santa Fe paid within the discount period. Assume that both buyer and seller use a perpetual inventory system 1(a) Prepare entries that the buyer should record for the purchase. View transaction list ournal entry worksheet Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of $24,000 and credit terms of 3/10, n/60 Note: Enter debits before credits erchandise inventory 24,000 T20 Accounts payable 23,280 Record entry Clear entry View general journal 8 4

Explanation / Answer

Date

explanation

debit

credit

Inventory

24000

accounts payable

24000

accounts payable

24000

cash

23280

discount on accounts payable

720

Savings from discount

720

amount of interest to be paid if payment is made on last day

23280*8%*51/365

260.2258

net savings

459.7742

Date

explanation

debit

credit

Inventory

24000

accounts payable

24000

accounts payable

24000

cash

23280

discount on accounts payable

720

Savings from discount

720

amount of interest to be paid if payment is made on last day

23280*8%*51/365

260.2258

net savings

459.7742

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