Brady Co. purchased $2,000 of merchandise on account from Reed Corp. The merchandise was sold on credit terms of 3/10, n/30 and shipping terms of FOB shipping point. The cost of the merchandise to the seller was $1,432. May 2 Merchandise Inventory 2,000 2,000 Accounts Payable-Reed Corp. 0 Reed Corp. received payment in full from Brady Co. for its May 2 purchase. Payment was not made in time to take the discount. May 14 Accounts Payable-Reed Corp. Cash 1,940 x