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Ivanhoe Company is a furniture retailer and uses the perpetual inventory system. On January 14, 2022, Ivanhoe purchased merchandise inventory at a cost of $47,000.
Ivanhoe Company is a furniture retailer and uses the perpetual inventory system. On January 14, 2022, Ivanhoe purchased merchandise inventory at a cost of $47,000. Credit terms were 2/10, n/30. The inventory was sold on account for $61,000 on January 21, 2022. Credit terms were 1/10, n/30. The accounts payable was settled on January 23,2022, and the accounts receivables were settled on January 30, 2022 Prepare journal entries to record each of these transactions. (Credit account titles are automatically inden ted when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Account Titles and Explanation Date Debit Credit Jan. 14 Inventory 47000 Accounts Payable 47000 Jan. 21 Accounts Receivable 61000 Inventory 61000 (To record credit sale) Jan. 23 Accounts Payable Cash (To record cost of good sold) Jan. 30 Jan. 30
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