5)Magnum mart purchased goods on 4th January 2019 for RO 86,000 on credit under the payment terms 2/10, n/30 and paid cash on 12th January 2019. How would you record this in the books of buyer under Periodic inventory system?a.Cash RO 84,280 Dr / Purchase discount RO 1,720 Dr /Account payable RO 86,000 Crb.Account payable RO 86,000 Dr / Purchase discount RO 1,720 Cr / Cash RO 84,280 Crc.Cash RO 86,000 Dr / Account payable RO 86,000 Crd.Account payable RO 86,000 Dr / Cash RO 86,000 Cr

Discount=Accounts payable×Rate=RO 86,000×2%=RO 1,720

Answered: Magnum mart purchased goods on 4th…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 23Q: If a retailer purchased inventory in the amount of $680, terms 3/10, n/60, returned $120 of the...

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Magnum mart purchased goods on 4th January 2019 for RO 86,000 on credit under the payment terms 2/10, n/30 and paid cash on 12th January 2019. How would you record this in the books of buyer under Periodic inventory system?

Cash RO 84,280 Dr / Purchase discount RO 1,720 Dr /Account payable RO 86,000 Cr

Account payable RO 86,000 Dr / Purchase discount RO 1,720 Cr / Cash RO 84,280 Cr

Cash RO 86,000 Dr / Account payable RO 86,000 Cr

Account payable RO 86,000 Dr / Cash RO 86,000 Cr

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