When recording the purchase of inventory using the net method, you need to account for any discounts offered for early payment.
When recording the purchase of inventory using the net method, you need to account for any discounts offered for early payment. In this case, the invoice indicates 2/10, n/30, which means you can take a 2% discount if you pay within 10 days, otherwise, the full amount is due within 30 days.
To record the purchase, you would debit the Inventory account for $3,000 and credit the Accounts Payable account for $3,000. If you choose to take advantage of the discount, you would also debit the Accounts Payable account for the amount of the discount and credit the Cash account.