During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows: 6 Purchased goods for $1,200 from Green with terms 2/10, n/30.
6 Purchased goods from Munoz for $900 with terms 2/10, n/30.
14 Paid Green in full.
Feb. 2 Paid Munoz in full.
28 Purchased goods for $350 from Reynolds with terms n/45.

Required:
Prepare journal entries to record the transactions, assuming Axe uses a perpetual inventory system.

Axe Corporation

Journal Entries:

Feb. 6 Debit Inventory $1,200

Credit Accounts payable (Green) $1,200

To record the purchase of goods with terms 2/10, n/30.

Feb. 6 Debit Inventory $900

Credit Accounts payable (Munoz) $900

To record the purchase of goods with terms 2/10, n/30.

Feb. 14 Debit Accounts payable (Green) $1,200

Credit Cash $1,176

Credit Cash Discounts $24

To record the payment on account with discounts.

Feb. 20 Debit Accounts payable (Munoz) $900

Credit Cash $900

To record full settlement on account.

Feb. 28 Debit Inventory $350

Credit Accounts payable (Reynolds) $350

To record the purchase of goods with terms n/45.

Explanation:

a) Data and Analysis:

Feb. 6 Inventory $1,200 Accounts payable (Green) $1,200

with terms 2/10, n/30.

Feb. 6 Inventory $900 Accounts payable (Munoz) $900

with terms 2/10, n/30.

Feb. 14 Accounts payable (Green) $1,200 Cash $1,176 Cash Discounts $24

Feb. 20 Accounts payable (Munoz) $900 Cash $900

Feb. 28 Inventory $350 Accounts payable (Reynolds) $350

with terms n/45.

answer; 33,000;

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"