M6-20 Recording Journal Entries for Purchase Discounts (Net Method) [LO 6-51) 625 points On October 5, your company buys and receives inventory costing $5,400, on terms 2/30, 1/60. On October 20. your company pays the amount owed relating to the October 5 purchase Prepare the journal entries needed on October 5 and 20, assuming the company uses a perpetual system and records purchase discounts using the net method. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction lit Print Journal entry worksheet References > Record the $5,400 purchase of goods from a manufacturer on terms 2/30, 1/60 on October 5 using the net method. Note Enter debits before credits General Journal Transaction 1 Debit Credit