Comfort Company purchased 300 units of inventory on November 17, 2024. The units have a...
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Accounting
Comfort Company purchased 300 units of inventory on November 17, 2024. The units have a list price of $275 each, but Comfort was given a 20% trade discount. The terms of the sale were 2/10, n/30. Comfort uses a perpetual inventory system.
Required:
Prepare the journal entries to record the (a) purchase by Comfort on November 17 and (b) payment on November 26, 2024. Comfort uses the gross method of accounting for purchase discounts.
Prepare the journal entry for the payment, assuming instead that it was made on December 15, 2024.
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