On December 28, 2013, Videotech Corporation purchased 10 units of a new satellite uplink system from Tristar Communications for $25,000 each. The terms of each sale were 1/10, n/30. VTC uses the net method to account for purchase discounts and a perpetual inventory system. VTC paid the net-of-discount amount on January 6, 2014.
Prepare the necessary journal entries on December 28 and January 6 to record the purchase and payment, assuming that VTC uses the net method to account for purchase discounts.