Menke Company is a furniture retailer and uses the perpetual inventory system. On January 14, 2010, Menke purchased merchandise inventory at a cost of $25,000. Credit terms were 2/10, n/30. The inventory was sold on account for $40,000 on January 21, 2010. Credit terms were 1/10, n/30. The accounts payable was settled on January 23, 2010 and the accounts receivable were settled on January 30, 2010. Prepare journal entries to record each of these transactions.
| Date | Particular | Debit | Credit |
| 14-january-2010 | merchandise inventory | 25000 | |
| To credit accounts payable | 25000 | ||
| 21-january-2010 | accounts receivable | 40000 | |
| To merchandise inventory | 40000 | ||
| 23-january-2010 | Accounts Payable | 25000 | |
| TO Cash | 24500 | ||
| To discount recived
(25000*2%) |
500 | ||
| 30-january-2010 | Cash | 39600 | |
| Discount given
(40000*1%) |
400 | ||
| To accounts payable |
