Question
Kahiltna Company, a manufacturer of air conditioners, sold 100 units to LeConte Company on November 17, 2019. The units have a list price of $400
Kahiltna Company, a manufacturer of air conditioners, sold 100 units to LeConte Company on November 17, 2019. The units have a list price of $400 each, but LeConte was given a 20% trade discount. The terms of the sale were 2/10, n/30. Kahiltna uses a periodic inventory system.
Question: Kahiltna's journal entries to record a full payment by LeConte on December 10, 2019, using the net method of accounting for purchase discounts would include:
a debit to interest expense of $640
a debit to interest expense of $800
a debit to accounts payable of $31,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started