Final answer:
The net method records the payment within the discount period for purchased inventory as a debit to Accounts Payable for the invoice amount, a credit to Cash for the discounted amount, and a debit to Purchase Discounts for the discount received.
Step-by-step explanation:
When utilizing the net method of recording purchases, the journal entry for the payment within the discount period for inventory purchased from Dade Packing, with terms of 2/10, n/30, and an invoice of $3,000, should reflect the discount received. The entry when the payment is made within 10 days would be a debit to Accounts Payable for the full invoice amount of $3,000 and a credit to Cash for the discounted amount of $2,940 (which is $3,000 less the 2% discount of $60). Additionally, a debit to Purchase Discounts for $60 would reflect the discount taken.
The detailed journal entry would be:
- Debit Accounts Payable: $3,000
- Credit Cash: $2,940
- Debit Purchase Discounts: $60