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Unformatted text preview: Purchases 19,600 Accounts payable Aug. 28 Accounts payable 15,840 Purchase Discounts Lost 160 Cash Aug. 31 Purchase Discounts Lost 240 Accounts payable The purchases are listed as expenses or liabilities on financial statements, and the Purc Discounts Lost is reported under the "Other expenses and losses" section of the income statement. I prefer the gross method because it's somewhat simpler to record the transactions, and need to report any discounts lost that you would need to report under the net method. 12,000 1,200 16,000 20,000 16,000 hase ed at the 11,760 1,200 15,840 19,600 16,000 240 chase e d you don't...
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This note was uploaded on 09/24/2011 for the course ACCT 330 taught by Professor Sheik during the Spring '11 term at Mountain State.
- Spring '11