Question

On September 12, Vander Company sold merchandise in the amount of $7,200 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,700. Jepson uses the periodic inventory system and the gross method of accounting for purchases. The journal entry that Jepson will make on September 12 is:

Answer 1

Answer: See explanation

Explanation:

Following the information that is given in the question, the journal entry that Jepson will make on September 18 will be analysed below:

Debit Accounts payable $7,200

Credit Purchases discounts = 2% × $7200 = $144

Credit Cash = $7200 - $144 = $7056