Financial Accounting

Learn the toughest concepts covered in your Financial Accounting class with step-by-step video tutorials and practice problems.

Merchandising Operations

Periodic Inventory - Purchase Discounts

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Any discounts we receive for quick payment are also kept in an account separate from our main Inventory account.

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Periodic Inventory:Purchase Discounts

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Problem

On April 12, a company purchased goods worth $14,000 on account with terms of 2/15 net 30. The company paid its supplier on April 25. In a periodic system, the journal entry to record the payment on April 25 would include: