Record the following transactions of Allen Inc.:

March 8 Purchased merchandise on credit from Alenikov Designs, Invoice 1091, list price $6,000, trade discounts of 30% and 15%; terms 3/10, n/30.
17 Paid the amount owed on the purchase of March 8 from Alenikov Designs, less the 3 percent discount, Check 185.

The journal entry is shown below:

Explanation:

Journal entry.

On Mar.8 Merchandise Inventory A/c $3,570 (6000×(1-30%)×(1-15%))

                 To Accounts payable A/c $3,570

                 (Being credit purchase for invoice 1091 recorded)

On Mar.17 Accounts payable A/c Dr $3,570

                 To Discount Received A/c $107.10  ($3,570 × 3%)

                 To Cash A/c $3462.90

                 (Being Payment paid by Check 185 recorded)

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