Platinum Ltd buys their inventory from Metro. To encourage quick payments from their account receivables, Metro offers a 10% discount when payment is made within 2 days of purchases. On 13 May 2021, Platinum Ltd purchased inventory valued at N$15,000, paid via EFT on the same day. How would this transaction be recognized in the general journal of Platinum Ltd? Platinum Ltd uses a periodic inventory keeping system. a. Dr Purchases – N$ 15,000; Cr Bank – N$ 15,000 b. Dr Purchases – N$13,500; CR Accounts Payable – N$13,500 c. Dr Inventory – N$ 15,000; Cr Bank – N$ 15,000 d. Dr Purchases – N$ 13,500; Cr Bank – N$ 13,500 e. Dr Inventory – N$ 15,000; Cr Accounts Payable – N$ 15,000 f. Dr Inventory – N$13,500; Cr Bank – N$13,500
Platinum Ltd buys their inventory from Metro. To encourage quick payments from their account receivables, Metro offers a 10% discount when payment is made within 2 days of purchases. On 13 May 2021, Platinum Ltd purchased inventory valued at N$15,000, paid via EFT on the same day. How would this transaction be recognized in the general journal of Platinum Ltd? Platinum Ltd uses a periodic inventory keeping system. a. Dr Purchases – N$ 15,000; Cr Bank – N$ 15,000 b. Dr Purchases – N$13,500; CR Accounts Payable – N$13,500 c. Dr Inventory – N$ 15,000; Cr Bank – N$ 15,000 d. Dr Purchases – N$ 13,500; Cr Bank – N$ 13,500 e. Dr Inventory – N$ 15,000; Cr Accounts Payable – N$ 15,000 f. Dr Inventory – N$13,500; Cr Bank – N$13,500
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 2RE: Use the same information in RE9-1 except that the note is not interest bearing. Assume that the note...
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Question
Platinum Ltd buys their inventory from Metro. To encourage quick payments from their
a.
Dr Purchases – N$ 15,000; Cr Bank – N$ 15,000
b.
Dr Purchases – N$13,500; CR Accounts Payable – N$13,500
c.
Dr Inventory – N$ 15,000; Cr Bank – N$ 15,000
d.
Dr Purchases – N$ 13,500; Cr Bank – N$ 13,500
e.
Dr Inventory – N$ 15,000; Cr Accounts Payable – N$ 15,000
f.
Dr Inventory – N$13,500; Cr Bank – N$13,500
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