On may 1, anders company purchased merchandise in the amount of $5,800 from shilling, with credit terms of 2/10, n/30. anders uses the perpetual inventory system and the gross method. the journal entry or entries that anders will make on may 1 is:
DR Inventory $5,800
CR Cash $5,800.
In this context it is assumed that Anders company used credit instead of full immediate payment. Once the company pays off their credti within 10 days, a 10% discount entry will be entered.
