Any discounts we receive for quick payment are also kept in an account separate from our main Inventory account.

Concept #1: Periodic Inventory: Purchase Discounts

Practice: On April 12, a company purchased goods worth $14,000 on account with terms of 2/15 net 30. The company paid its supplier on April 25. In a periodic system, the journal entry to record the payment on April 25 would include: