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Journal entries of Merchandise purchase on account.
1. (3/30/2009) Sold $1,700,000 Merchandise Inventory on account. All sales are recorded net of the 2% discount offered by the company. (Any discounts not eventually taken by the purchaser are recognized as interest income.) No shipping charges are paid
2. (3/31/2009) Determined that $40,000 of the Merchandise purchase in Transaction 37 was actually for office supplies, and not Merchandise Inventory. Goochland would have recorded the supplies at their price net of the 2% discount.
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