[rnavarrette]

Taos company purchased merchandise for resale from tucson company with an invoice price of 22,000 and credit terms of 3/10, n60. The merchandise had cost tucson 15,000. Taos paid with the discount period. Assume that both the buyer and seller use a perpetual inventory system. Prepare entries that the buyer shuld record
For the purchase.

[pready]

For the purchase;
Debit Merchandise Inventory for 22,00
Credit Accounts Payable for 22,000

For the payment;
Debit Accounts Payable for 22,000
Credit Cash for the amount actually paid
Credit Purchase Discount for the amount of the discount