Kahiltna Company, a manufacturer of air conditioners, sold 100 units to LeConte Company on November...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Kahiltna Company, a manufacturer of air conditioners, sold 100 units to LeConte Company on November 17, 2019. The units have a list price of $400 each, but LeConte was given a 20% trade discount. The terms of the sale were 2/10, n/30. Kahiltna uses a periodic inventory system.
Question: Kahiltna's journal entries to record a full payment by LeConte on December 10, 2019, using the net method of accounting for purchase discounts would include:
a debit to interest expense of $640
a debit to interest expense of $800
a debit to accounts payable of $31,200
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
