Conquest Company uses a perpetual inventory system. Conquest purchased $1,500 of merchandise on account and payment was made within the discount period. The credit terms were 2/10, n/30. Journalize Conquest's purchase and payment.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including payment periods, interest rates, and penalties for late payment.

Perpetual Inventory System

An accounting method that continuously updates inventory records after each purchase or sale.

Discount Period

The timeframe within which a payment can be made at a discounted rate, often used in sales transactions to encourage early payment.