On June 1, Sabrex Electric Bought $7,500 of Goods with Terms

question 8

Essay

On June 1, Sabrex Electric bought $7,500 of goods with terms of 3/15, n/45.
Required:
Fill in the blanks below with dollar amounts, if any are appropriate.
(Use the net method for items a. and b. below.)
a.If payment was made on June 15, you would debit Accounts Payable for $________.
b.If payment was made on July 3, you would debit Purchases Discounts Lost for $________.

(Use the gross price method for c. and d. below.)
c.If payment is made on June 15, you would credit Cash for $________.

d.Assuming no payment had yet been made, you would debit Purchase Discounts Lost for $________ in the adjusting entry at July 31 (fiscal year-end).

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