Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 6,000
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Barkers Baked Goods purchases dog treats from a supplier on February 2 at a quantity of 6,000 treats at $1 per treat. Terms of the purchase are 2/10, n/30. Barkers pays half the amount due in cash on February 28 but cannot pay the remaining balance due in four days. The supplier renegotiates the terms on March 4 and allows Barkers to convert its purchase payment into a short-term note, with an annual interest rate of 6%, payable in 9 months.
Show the entries for the initial purchase, the partial payment, and the conversion.
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Related Book For
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781947172685
1st Edition
Authors: Patty Graybeal, Mitchell Franklin, Dixon Cooper
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