Homework Sourseare not required ournal entries Solution2 The inventory cost
are not required ournal entries)
Solution
2. The inventory cost to Peewee is $165718 ($187800-($187800-$18700)*2%))
| Date | Account,title and explanation | Debit | Credit |
| May 8 | Merchandise Inventory | $187800 | |
| Accounts Payable | $187800 | ||
| May 13 | Accounts Payable | $18700 | |
| Merchandise Inventory | $18700 | ||
| May 14 | Accounts Payable | $169100 | |
| Merchandise Inventory* | $3382 | ||
| Cash | $165718 | ||
| * Discount ($187800-$18700)*2% = $3382 | |||
