Question

Your company purchased inventory from Dade Packing for $3,000, with the invoice indicating 2/10, n/30

According to the gross method of recording purchases, the purchase of the inventory should be recorded as....

Answer 1

The purchase of the inventory should be recorded as a debit to Inventory and a credit to Accounts Payable - Dade Packing.

Step-by-step explanation:

The purchase of the inventory should be recorded as follows:

• Debit Inventory: $3,000
• Credit Accounts Payable - Dade Packing: $3,000

When the company purchased inventory from Dade Packing for $3,000, the Inventory account is debited for the cost of the inventory, and the Accounts Payable - Dade Packing account is credited to reflect the amount owed to Dade Packing.