EA$2.$ LO $6\mathrm{.}1$ Marx Corp. purchases $135$ fax machines on credit from a manufacturer on April $7$ at a price of $$250$ per machine. Terms of the purchase are $\frac{4}{10},\frac{n}{20}$ with an invoice date of April $7.$ Marx Corp pays in full for the fax machines on April $17.$ Create the journal entries for Marx Corp. to record:

A$.$ the initial purchase

B$.$ the subsequent payment on April $17$

Solution

A$.$

$\backslash$table$[[$Apr$.7,,33,750],[,,33,750],[,$To recognize purchase of fax machine, terms $\frac{4}{10},\frac{n}{20},]]$

B$.$

To recognize payment, less discount