On October 5, your company buys and received inventory costing $6,900, on terms 2/30, n/60. On October 20, your company pays the amount owed related 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.

On October 5 , your company buys and receives inventory costing $6,900, on terms 2/30,n/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.)