On August 25, Barrymore Co., which uses a perpetual inventory system, purchased $5,000 worth of merchandise on terms 2/10, n/30; on September 2, the amount due was paid. Using the gross method of recording purchases, prepare general journal entries to record (a) the purchase on August 25, and (b) the cash payment on September 2.

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The Answer of On August 25, Barrymore Co., which uses a perpetual inventory system, purchased $5,000 worth of merchandise on terms 2/10, n/30; on September 2, the amount due was paid. Using the gross method of recording purchases, prepare general journal entries to record (a) the purchase on August 25, and (b) the cash payment on September 2.