 Hello, in this lecture we're going to work some smaller test type problems, problems that could be in the format of multiple choice type questions. We have here a company records purchases using the net method. On February 1st, they purchased merchandise inventory on account for 8,480 with terms 3,10, and 30, 3% discount paid within 10 days, otherwise paid within 30. The February 1st journal entry to record this transaction would include what? Normally when we buy something and usually the problem will assume that we're going to buy it not including the discount and then if we happen to pay it within 10 days we have to adjust for the fact that we got the discount, the assumption being that we're going to basically pay at the end in 30 days and if there was no discount that's what we would typically do because we want to hold on to our money as long as possible. But if we think that we're always going to take advantage of the discount, meaning we are going to do our best to pay within 10 days, then we want to put it on the books at