Can I read Journal Entry for Purchase Discount on EtoBox?
Journal Entry for Purchase Discount by jasbaay is a document available to read on EtoBox.
What is Journal Entry for Purchase Discount about?
On January 2, 2022, the company purchased merchandise on account from BQ with terms allowing a 3% discount if paid within 10 days. On January 9, the company paid the account, recording a debit to Accounts Payable of 170,000, a credit to Cash of 164,900, and a credit to Purchase Discount of 5,100. The purchase discount reflects the 3% savings for early payment calculated from the total accounts payable.
- Author
- jasbaay
- Language
- EN