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Question: On November 15, 2015, Shields Company purchased inventory costing $6,200 on credit. The credit terms were 2/10, n/30.
a. Assume that Shields Company paid the invoice on November 23, 2015. Prepare journal entries to record the purchase of this inventory and the cash payment to the supplier using the net-of-discount method.
b. Set up the necessary T-accounts and post the journal entries from question a to the accounts.
c. Compute the cost of a lost discount as an annual percentage rate
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Destin Corporation acquired Beltran Corporation on January 1, 2014, at a cost of $75 million. Calculate any impairment of goodwill at December 31, 2014
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