Bunker Auto Supply Purchased Merchandise on January 4, 2013, at a Price

Essay

Bunker Auto Supply purchased merchandise on January 4, 2013, at a price of $70,000, subject to credit terms of 2/10, n/30. Bunker uses the gross method for recording purchases and uses a periodic 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 January 11, 2013.
3. Prepare the journal entry to record the balance of the amount due on February 2, 2013.