Recording Cash Discounts On November 15, 2015, Shields Company purchased inventory costing $12,400 on credit. The credit terms were 1/10, n//30. a. Assume that Shields Company paid the invoice on November 23, 2015. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using the net- of-discount method. General Journal Date Description Debit Credit 11/15 Inventory 12,276 Accounts Payable 12,276 11/23 Accounts Payable 12,276 Cash 12,276 0 0 0 0 b. Set up the necessary T-accounts and post the journal entries from question a. to the accounts. Cash Inventory 12,276 12,276 Accounts Payable 12,276 12,276 0 0 C. Compute the cost of a lost discount as an annual percentage rate. Round answer to one decimal place (i.e., 34.6%). 0 X %