Question

A company purchased inventory for $ 2 comma 000 from a vendor on​ account, FOB shipping​ point, with terms of 3​/15​, ​n/30. The company paid $ 200 cash for freight in. The entry to record the payment of the invoice within 15 days of the invoice date by the purchaser would include​ ________. ​ (Assume a perpetual inventory​ system.)

Answer 1

credit of $2,140

Step-by-step explanation:

Data provided :

Cost of inventory purchased = $2,000

Terms = 3​/15​, ​n/30

Charges paid for the freight = $200

Now,

Since, The invoice was paid within 15 days

thus,

Discount of 3% will be given

Therefore,

The amount to be received = $2,000(1 - Discount rate) + Charges paid for the freight

= $2,000(1 - 0.03) + $200

= $2,140

Entry record will be credit of $2,140