Prepare joumal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system. September 15 Purchased merchandise with an invoice price of \( \$ 65,000 \) and credit terms of \( 2 / 5, \mathrm{n} / 15 \). September 29 Paid supplier the amount owed on the September 15 purchase.

To record the transactions using the gross method and a perpetual inventory system, we will prepare journal entries for each transaction. ### Transaction 1: September 15 - Purchase of Merchandise **Details:** - Invoice Price: \( \$ 65,000 \) - Credit Terms: \( 2 / 5, n / 15 \) (This means a 2% discount is available if paid within 5 days; otherwise, the net amount is due in 15 days.) **Journal Entry:** On September 15, when the merchandise is purchased, the entry will be: - **Debit Merchandise Inventory** for the full invoice amount. - **Credit Accounts Payable** for the same amount. **Journal Entry:** ``` Date Account Title Debit Credit September 15 Merchandise Inventory 65,000 Accounts Payable 65,000 ``` ### Transaction 2: September 29 - Payment to Supplier **Details:** - Since the payment is made on September 29, which is after the discount period (5 days), the company will pay the full invoice amount of \( \$ 65,000 \). **Journal Entry:** On September 29, when the payment is made, the entry will be: - **Debit Accounts Payable** for the amount owed. - **Credit Cash** for the same amount. **Journal Entry:** ``` Date Account Title Debit Credit September 29 Accounts Payable 65,000 Cash 65,000 ``` ### Summary of Journal Entries 1. **September 15:** - Debit Merchandise Inventory: \( \$ 65,000 \) - Credit Accounts Payable: \( \$ 65,000 \) 2. **September 29:** - Debit Accounts Payable: \( \$ 65,000 \) - Credit Cash: \( \$ 65,000 \) These entries reflect the purchase of merchandise and the subsequent payment to the supplier under the specified terms.