On August 5, Tollus Company purchased inventory costing $77,000 from Dunbar, Inc., on credit. The terms were 1/10, n/ 45. Tollus paid the invoice on August 12th.

a. Prepare journal entries to record the following: 1. Purchase of the inventory (net-of-discount method) on August 5th. 2. Payment of Malton invoice on August 12th.

Date	Account	Debit	Credit
August 5	CashInventoryAccounts payableInterest expense		Answer
	CashInventoryAccounts payableInterest expense		Answer
	To record purchase of inventory.
August 12	CashInventoryAccounts payableInterest expense		Answer
	CashInventoryAccounts payableInterest expense		Answer
	To record cash payment to supplier.

b. Post the journal entries from a. to the T-accounts below.

Enter your answers, in transaction order, in the first open field of the appropriate column in each account.

Cash
	Answer	Answer

Inventory
	Answer	Answer

Accounts payable
	Answer	Answer