Question: Trade Discount and Cash Discounts
1. Calculate the net amount to record the invoice, less the 10% trade discount.
2. Calculate the amount to be paid on this invoice within the discount period.
3. Journalize the purchase of the merchandise on May 17 in a general journal. Journalize the payment on May 27 (within the discount period). If an amount box does not require an entry, leave it blank.
Merchandise was purchased on account from Jacob's Distributors on May 17. The purchase price was $1,770, less a 10% trade discount and credit terms of 2/10, n/30. (If required, round your answers to the nearest cent.)