# Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises. A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for \$10 each. Credit terms are 2/10, n/60 from the invoice date of April 7. B. On April 15, Tolbert pays the amount due in cash to the supplier.

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### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

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FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 12, Problem 5EA
Textbook Problem
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## Review the following transactions and prepare any necessary journal entries for Tolbert Enterprises.A. On April 7, Tolbert Enterprises contracts with a supplier to purchase 300 water bottles for their merchandise inventory, on credit, for \$10 each. Credit terms are 2/10, n/60 from the invoice date of April 7.B. On April 15, Tolbert pays the amount due in cash to the supplier.

To determine

Concept introduction:

Purchase terms may contain the cash discount for early payment of the credit purchase. For example, a ter. 2/10, n 30 means there shall be a 2% discount allowed if the payment is made within 10 days and the total credit period allowed is 30 days.

Journal Entry: In journal entry, company records all the business transactions which are in monetary form. Company records the transaction on debit and credit in journal entry which are always equal.

To prepare:

The journal entries for the given transactions.

### Explanation of Solution

The journal entries for the given transaction are explained is as follows:

 Journal entries S.No. Date Account Title Debit Credit A April. 7 Purchases \$ 3,000 Accounts Payable \$ 3,000 ...

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