Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Explore in-depth answers to your questions from a knowledgeable community of experts across different fields. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.
Sagot :
a) Spend $860,000 to buy Blossom
$860,000 in Accounts Payable (Cr)
Suppliers give credit discounts in order to recoup receivables before the credit period by giving consumers a discount. At the moment of sale, the conditions of payment are decided. Kingbird Company was bought by The Blossom Company under the terms of 2/10, n/30. This means that if the payment is paid within 10 days, a 2% reduction will be given on the invoice price. The discount is not included in the entry because it has not been realised, hence the journal entry at the time of purchase will be recorded as accounts payable for the entire invoice amount.
Learn more about blossom hear :
https://brainly.in/question/11126426
#SPJ4
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.
