Instructions Johnson Company uses a perpetual inventory system. On October 23, Johnson purchased $190,000 of inventory on credit with payment terms of 1/15, net 45. Required: Using the net price method, prepare journal entries to record Johnson's purchases on October 23 and the subsequent payment on October 31. Chart of Accounts CHART OF ACCOUNTS Johnson Company General Ledger General Journal Using the net price method, prepare journal entries to record Johnson's purchases on October 23 and the subsequent payment on October 31. Johnson Company uses a perpetual inventory system. General Journal Instructions PAGE 1 GENERAL JOURNAL POST. REF. DEBIT CREDIT DATE ACCOUNT TITLE 1 2 3 ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 142 Allowance for Inventory Valuation 152 Prepaid Insurance 181 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 241 Accrued Loss on Purchase Commitment REVENUE 411 Sales Revenue EXPENSES 500 Cost of Goods Sold 510 Purchases 511 Purchase Returns and Allowances 512 Purchase Discounts Taken 513 Purchase Discounts Lost 514 Loss on Purchase Commitment 515 Recovery of Accrued Loss on Purchase Commitment 521 Insurance Expense 522 Utilities Expense 251 Unearned Revenue 523 Salaries Expense EQUITY 311 Common Stock 331 Retained Earnings 524 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses