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How make journal entries to record the purchase of inventory

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Reference no: EM132703484

Storm Corporation purchases materials ?om a supplier that offers credit terms of 2/ 15, n/60. It purchased $50,000 of merchandise inventory from that supplier on January 20, 2019.

Problem a. Assume that Storm Corporation paid the invoice on February 15, 2019. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using the net-of- discount method.

Problem b. Set up the necessary T-accounts and post the journal entries from question a to the accounts.

Reference no: EM132703484

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