Quiz Question 10

On December 15^th Polaris Co. purchases on account $1.5 million in merchandise. The credit terms are 2/10, n/30. Prepare the journal entry(s) on December 15^th to record the purchase. On December 30^th Polaris Co. pays for their purchase. Record the necessary journal entry(s) on December 30^th.

Note: Assume Polaris Company records their purchases net.

Note: The above transaction is a PURCHASE, NOT A SALE!