What would the transaction be for . .

Collected a large account receivable in the amount of $40,000.
Terms on the receivable were N/30 ?



Purchased merchandise on account from Han Trading for $15,000.
Terms 2/10 , N/30 ?



I know 2/10 means 2% in 10 days and N/30 means paid in full in 30 days, right ?

qcmar24

For the first entry

Dr. Cash.................40,000
Cr. Accounts Receivable........40,000

second entry

Dr. Merchandise Inventory............15,000
Cr. Accounts Payable......................15,000

if you do the payment 2/10

Dr. Accounts Payable...............15,000
Cr. Merchandise Inventory..............300
Cr. Cash........................................14,700

if paid n/30

Dr. Acounts Payable..........................15,000
Cr. Cash..........................................15,0 00