On October 17, Conrad Beauty Supplies Bought $42,000 of Goods

question 79

Essay

On October 17, Conrad Beauty Supplies bought $42,000 of goods with terms of 1/10, n/30. One half of the bill was paid on October 24, and the rest of the bill was paid on October 31.
Assume that the seller has agreed to grant discounts on partial payments.
Required:
Prepare journal entries for October 24 using the:
1) gross price method
2) net price method

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Definitions:

LLC

A Limited Liability Company, a business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability of a corporation.

Double Taxed

The imposition of two or more taxes on the same income, asset, or financial transaction.

Syndicate

A syndicate is a group of individuals or organizations combined to promote some common interest, often in business or investing.

Raise Money

The act of collecting funds for a purpose, which can involve various methods such as loans, investments, or donations.