Patty's Pet Store Purchased Merchandise on October 10, 2009, at a Price

Essay

Patty's Pet Store purchased merchandise on October 10, 2009, at a price of $35,000, subject to credit terms of 2/10, n30. Patty's uses the gross method for recording purchases and uses perpetual inventory system.
Required:
1. Prepare the journal entry to record the purchase.
2. Prepare the journal entry to record the payment of one-half the invoice amount on October 18, 2009.
3. Prepare the journal entry to record the payment of the balance of the amount due on November 8, 2009.