Answered: Recording cash Discounts On November…

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

Chapter7: Inventories: Cost Measurement And Flow Assumptions

Section: Chapter Questions

Problem 4P

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Recording cash Discounts

On November 15, 2015, Shields Company purchased inventory costing $15,500 on credit. The credit terms wert 2/10, //30.

Assume that Shields company paid the invoice on November 23, 2015. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using net of discount method

Set up the necessary -accounts and post the journal entries from question a. to the accounts

c compute the cost of a lost discount as an annual percentage rate. Round answer to one decimal place i.e. 34.6%).

complete this with all work please thanks

Recording Cash Discounts
On November 13, 2018 Sheds Company purchased every costing $15.500 on ods. The credit tw 2/19
Assume that Sheds Company paid the invoe on November 23, 2015 Prepare penal entes to recent the purchase oferary and the ch pam the spe
General Journal
Date
Hins
Debit
Credi
Set up the necrary T-accounts and post the journal erones frum question a to the accounts
Cash
Inventary
Accounts Payable
Compute the cost of a fost discount as an annual percentage rate. Round answer to one decimal place e, 54.6

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