Meteor Co Purchased Merchandise on March 4, 2018, at a Price

question 89

Essay

Meteor Co. purchased merchandise on March 4, 2018, at a price of $30,000, subject to credit terms of 2/10, n/30. Meteor uses the net method for recording purchases and uses a periodic inventory system.
Required:
1. Prepare the journal entry to record the purchase.
2. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on March 11, 2018.
3. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on April 2, 2018.

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Definitions:

African-Americans

Individuals in the United States with partial or total ancestry from any of the black racial groups of Africa.

Latinos

Individuals of Latin American origin or descent, often residing in the United States, encompassing a diverse range of cultures, ethnicities, and national backgrounds.

Winter 1930

A period marked by harsh weather conditions and economic hardship, during the early years of the Great Depression.

Reconstruction Finance Corporation

A government agency established in 1932 in the United States to provide financial support to banks, industries, and other institutions to stimulate economic recovery.