Question 1 Answer saved Marked out of 8.50 p Hop question Recording Cash Discounts Schrand Corporation purchases materials from a supplier that offers credit terms of 3/15, 1/60. It purchased $12,000 of merchandise inventory from that supplier on January 20, 2016. Required a. Assume that Schrand Corporation paid the invoice on February 15, 2016. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using the net-of-discount inethod. General Journal Description Credit 1/20 Inventory Debit 11,640 0 11,640 11,640 Accounts payable 2/15 Accounts payable Interest rxpense discounts lost Cash 12,000 interest Expense-Discounts LostE) b. Set up the necessary T-accounts and post the journal entries from question a to the accounts, Cash IAI Accounts Payable (L) 1,20 1/20 11.640 1:20 2/15 0 12,000 2/15 11,640 2:15 Inventory (A) 11.640 0 2/15 c. Compute the cost of a lost discount as an annual percentage rate. Round your answer to one decimal place. 25. 11