Described below are certain transactions of Crane Company for 2021:
1. On May 10, the company purchased goods from Fox Company for $76,800, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18.
2. On June 1, the company purchased equipment for $94,800 from Rao Company, paying $33,600 in cash and giving a one-year, 9% note for the balance.
3. On September 30, the company discounted at 11% its $200,000, one-year zero-interest-bearing note at Virginia State Bank, receiving $180,000.
Required:
(a) Prepare the journal entries necessary to record the transactions above using appropriate dates.
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Home » Business » Described below are certain transactions of Crane Company for 2021: 1. On May 10, the company purchased goods from Fox Company for $76,800, terms 2/10, n/30. Purchases and accounts payable are recorded at net amounts. The invoice was paid on May 18.