Brief Exercise 7-2

Recording Inventory Purchases

On March 20, Shelton Fireworks purchases on account $12,000 of fireworks with a list price of $13,000. Shelton pays the vendor on March 30, which qualifies Shelton for a 2% discount. Shelton uses a perpetual inventory system.


Record all entries associated with Shelton’s purchase of the inventory. For a compound transaction, if an amount box does not require an entry, leave it blank or enter “0”.

Mar 20

Mar 30