Purchase-Related Transactions
The debits and credits for four related entries for a purchase of $40,000, terms 2/10, n/30, are presented in the following T accounts.
Cash:
(2) $450
(4) $34,300
Accounts Payable:
(3) $4,900
(1) $39,200
(4) $34,300
Merchandise Inventory:
(1) $39,200
(3) $4,900
(2) $450
Describe each transaction.
1.
2.
3.
4.