A Company Purchased Inventory for $100,000 on Account and Recorded

question 41

Essay

A company purchased inventory for $100,000 on account and recorded it as follows:
$$\begin{array} { | c | c | c | } \hline \text { Merchandise Inventory } & 100,000 & \\\hline \text { Accounts Payable } & & 100,000 \\\hline\end{array}$$ The vendor's invoice showed terms of 3/10,net 30.Prepare the journal entry for the purchaser for the payment of the invoice seven days after the invoice date,assuming that the purchaser uses the perpetual inventory system.

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Definitions:

Probability

A measure of the likelihood that an event will occur, quantified between 0 (impossible) and 1 (certain).

Relative Frequency Histograms

Graphs that display the proportion or percentage of observations within each category/bin of the data.

Probability Histogram

A graphical representation that displays the probability distribution of a discrete variable.

Simple Events

Events in probability that consist of a single outcome and cannot be broken down further.