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Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system. Aug. 1 Purchased merchandise with an invoice price of $108,000 and credit terms of 3/10, n/30. Aug. 11 Paid supplier the amount owed from the August 1 purchase.

Respuesta :

Answer:

Supplier or creditor ac Dr .... to Cash ac Cr

Explanation:

  • Company records purchases using the gross method

Purchase ac Dr .. to Creditor ac Cr      

{ Asset / Expense increase debit , liability increase credit }

  • Paid supplier the amount owed from the August 1 purchase.

Supplier or creditor ac Dr .... to Cash ac Cr

{ Liability decrease debit , Asset decrease credit }