Unless I tell you otherwise, all journal entries on this exam are similar to the journal entries in Chapter 6 of the textbook. All cash discounts are assumed to be taken by both the buyer and the seller. For instance, if a sale or purchase of $1,000 is made with the terms 2/10, 1/30, the sale or purchase will both be recorded at $980 (1.000 X.02= 20 and 1,000 - 20 = 980) We bought. Merchandise Inventory of $2,500 for cash