on december 28, 2024, videotech corporation (vtc) purchased 15 units of a new satellite uplink system from…

on december 28, 2024, videotech corporation (vtc) purchased 15 units of a new satellite uplink system from tristar communications for $26,000 each. the terms of each sale were 1/10, n/30. vtc uses the net method to account for purchase discounts and a perpetual inventory system. vtc paid the net - of - discount amount on january 6, 2025. prepare the necessary journal entries assuming that vtc uses the net method to account for purchase discounts. note: if no entry is required for a transaction/event, select \no journal entry required\ in the first account field. view transaction list journal entry worksheet 1 2 videotech corporation (vtc) purchased 15 units of a new satellite uplink system from tristar communications for $26,000 each. the terms of each sale were 1/10, n/30. record the payment on january 6, 2025. note: enter debits before credits. date general journal debit credit january 06, 2025

on december 28, 2024, videotech corporation (vtc) purchased 15 units of a new satellite uplink system from tristar communications for $26,000 each. the terms of each sale were 1/10, n/30. vtc uses the net method to account for purchase discounts and a perpetual inventory system. vtc paid the net - of - discount amount on january 6, 2025. prepare the necessary journal entries assuming that vtc uses the net method to account for purchase discounts. note: if no entry is required for a transaction/event, select \no journal entry required\ in the first account field. view transaction list journal entry worksheet 1 2 videotech corporation (vtc) purchased 15 units of a new satellite uplink system from tristar communications for $26,000 each. the terms of each sale were 1/10, n/30. record the payment on january 6, 2025. note: enter debits before credits. date general journal debit credit january 06, 2025

Answer

Explanation:

Step1: Calculate the total cost before discount

The cost of each unit is $26,000 and 15 units are purchased. So the total cost before - discount is $26,000×15 = $390,000.

Step2: Calculate the discount amount

The credit terms are 1/10, n/30. Since payment is made within the discount period (January 6, 2025 is within 10 days of December 28, 2024), the discount rate is 1%. The discount amount is $390,000×0.01=$3,900.

Step3: Determine the net - of - discount amount

The net - of - discount amount is $390,000 - $3,900=$386,100.

Step4: Record the journal entry

The company pays the net - of - discount amount. The accounts payable is debited for the net amount, and the cash is credited for the same amount.

Date General Journal Debit Credit
January 06, 2025 Accounts Payable $386,100
Cash $386,100

Answer:

Date General Journal Debit Credit
January 06, 2025 Accounts Payable $386,100
Cash $386,100