Meteor Co Purchased Merchandise on March 4, 2009, at a Price

question 7

Essay

Meteor Co. purchased merchandise on March 4, 2009, at a price of $30,000, subject to credit terms of 2/10, n30. 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, 2009.
3. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on April 2, 2009.

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Definitions:

Capital

The funds used to acquire the natural and human resources needed to provide products; also called financial resources.

Supplies

Materials, goods, or equipment required for operations in businesses or other organizations.