会计英语 acc for merchans7.pptVIP

* Now, let’s see how a purchase discount works. On November 2nd, Z-Mart purchased $1,200 of merchandise inventory on account, credit terms are 2/10, n/30. In this entry we debit Merchandise Inventory and credit Accounts Payable for $1,200. * If Z-Mart pays the account within the discount period, the amount would qualify for the discount of 2% because it is within the ten-day discount period. In this entry, the entire Accounts Payable of $1,200 is paid off with a cash payment of $1,176. The difference of $24 is the purchase discount, and it is recorded as a reduction in the cost of the Merchand