Rescue Sequences LLC purchased inventory by issuing a $30,000, 60-day, non-interest bearing note on October 1. Assume that the note is discounted at a 15% rate.

	Required:
	Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year.

CHART OF ACCOUNTS

Rescue Sequences LLC

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance

	LIABILITIES
211	Accounts Payable
224	Interest Payable
231	Salaries Payable
260	Notes Payable
261	Discount on Notes Payable

	EQUITY
311	Common Stock
331	Retained Earnings

	REVENUE
411	Sales Revenue

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
513	Delivery Expense
515	Supplies Expense
521	Salaries Expense
532	Bad Debt Expense
536	Advertising Expense
540	Interest Expense
559	Miscellaneous Expenses

Prepare the journal entries for Rescue Sequences to record the purchase and payment assuming it uses a perpetual inventory system and a 360-day calendar fiscal year.

GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7