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

question 134

Essay

A company purchased inventory for $100,000 on account and recorded it as follows:

The vendor's invoice showed terms of 3/10,net 30.Give the journal entry for the payment of the invoice seven days after the invoice date,assuming that the vendor uses the perpetual inventory system.

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Definitions:

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A pre-written letter template used in both personal and business correspondence, designed for mass mailing with little customization needed.

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A contract between an insurer and a policyholder in which the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.