This Question 2 pts 2 of 2 1 complete This Test4 60000 of sp

This Question: 2 pts 2 of 2 (1 complete) This Test4 $60,000 of sportswear on account from Williams\' Store, Inc., on October 1, 2016. Credit terms are 1/10, net 45. Play Williams\' Store, Inc., on October 8, 2016, 1. Journalize the transactions for Play more on October 1,2016, and October 8,2016. 2. What was the final cost of this inventory for Play more? entnes. October 1: Purchases $60,000 of sportswear on account. Journal Entry Accounts Date Debit Credit Oct 1 October 8: Paid Williams Store, Inc Choose from any list or enter any number in the input fields and then continue to the next question

Solution

1)

2)Final cost =Purchase cost -Discount received

       = 60000-600

        = $ 59400

Date	Account	Debit	credit
October 1 2016	merchandise inventory	60000
	Accounts payable		60000
	[Inventory purchased on account]
October 8 2016	Accounts payable	59400
	merchandise inventory [60000*.01]	600
	cash		60000
	[Paiid to william \'store inc]